Nvidia stock hits a multi-month low as CEO Jensen Huang admits an affair and the board opens a probe
Shares fell about 4% on Monday to $178.44 after the board began an independent inquiry into whether Huang was targeted by a foreign intelligence effort.
- Shares: $178.44 on Monday, down about 22% in a month
- Board probe launched Sunday; Huang remains CEO
- Allegations rest on unnamed US officials; China denies
What happened
In a letter to employees, Nvidia CEO Jensen Huang, 63, admitted to being unfaithful to his wife, saying he had 'fallen short' of his responsibility. On Sunday, Nvidia's board announced an independent investigation, overseen by independent directors with outside legal counsel, into whether he was the target of a foreign intelligence effort. The board said it has no reason to believe US national security or Nvidia's secrets were compromised, and Huang remains CEO during the review.
The allegations
The New York Times reported last month that Huang had a close relationship with Alice Huang, a former executive of the Singapore data-centre firm Megaspeed, whom US authorities reportedly believe was a Chinese intelligence asset. These claims come from unnamed US officials and have not been confirmed. China's foreign ministry has called them groundless slander. President Trump said the FBI is looking into the matter.
Markets and fallout
Nvidia fell as much as 8% in Monday's session, touching $172.37, before closing about 4% lower at $178.44. It is down roughly 22% over a month. Shareholders have filed a proposed class-action lawsuit accusing the company and Huang of concealing his ties, and some US Democrats are calling for an investigation.
The succession question
In a Bloomberg interview, Huang said he hopes 'the next CEO of the company is already at the company', without naming anyone. He co-founded Nvidia in 1993 and has led it since.
