FBI investigates Nvidia's CEO over alleged Chinese spying

The FBI is currently probing Nvidia CEO Jensen Huang over allegations of an affair with a woman suspected of being a Chinese spy, as per Donald Trump. This development has led to a significant drop in Nvidia's shares, which fell by over four percent on Monday, despite a broader market rally on Wall Street. The AI chip company's stock plummeted by 4.3 percent on Monday, and nearly nine percent earlier in the day, as investors grappled with the potential implications of the investigation into Huang's actions.

The decline in Nvidia's stock occurred amid a rebound in US tech stocks, with the S&P 500 surging 2.35 percent and the Nasdaq 100 climbing 3.4 percent. Trump confirmed on Monday that the federal investigators were examining the allegations against Huang, although he defended the CEO after speaking directly to him. Trump stated that he believed Huang would "be in good shape" following the FBI's investigation.

Huang denied knowing that the woman, Alice Huang, was allegedly working for Chinese intelligence. On Sunday, he admitted to being unfaithful to his wife, expressing remorse for his actions and apologizing to his employees and family. Nvidia's board launched an independent investigation into whether Huang had been targeted by a foreign intelligence operation.

The company maintained that there was "no reason to believe" that national security or confidential information had been compromised, and reiterated its confidence in Huang.

The controversy has also drawn attention to Capitol Hill, where lawmakers are demanding greater scrutiny of Nvidia's security arrangements. Democratic House leader Hakeem Jeffries expressed concerns, while the House Select Committee on China requested a closed-door briefing with Huang. The investigation into Huang has intensified questions about Nvidia's heavy reliance on its founder, who has been leading the company since 1993.