Nvidia stock slides after company launches probe into Huang

Shares of Nvidia fell Monday morning, after the company opened an investigation into CEO Jensen Huang’s reported affair with a woman U.S. intelligence officials believe is a Chinese spy.

The company’s stock opened down 7.3 percent from Friday’s closing bell, and it ticked down to $170.24 per share during early-morning trading. That marked the lowest point for the chipmaker’s stock since late March.

As recently as last Wednesday, investors were trading Nvidia’s stock at greater than $200 per share. The company’s stock hit an all-time high in early October, reaching $243.37 per share.

Nvidia’s board of directors announced Sunday it was opening an “independent investigation” regarding “recent reporting” of Huang being the “target of a foreign intelligence effort.”

The New York Times reported on Oct. 29 that Huang had a “close relationship” with Alice Huang — the two are not related — last year, while the latter illegally smuggled advanced AI chips into China.

Jensen Huang, after his company initially dismissed the report , admitted to the affair in a company memo, Bloomberg reported Sunday. The Nvidia CEO reportedly said he was “unfaithful” to his wife of 41 years, Lori Huang, and his actions “hurt her and our children.”

Nvidia’s board of directors said Sunday a committee of “independent directors, assisted by outside independent counsel” will lead the investigation into Jensen Huang. The Taiwanese American executive has led Nvidia since he founded the firm in 1993.

“The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders,” the board said.

“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” the board added, noting Huang “fully supports the review and has committed to cooperating with it.”

GOP Reps. John Moolenaar (Mich.), Brian Mast (Fla.) and Rick Crawford (Ark.) last week asked Huang to join lawmakers for a closed-door briefing regarding the matter on Nov. 18.

The three lawmakers respectively chair the House Select Committee on China, the House Foreign Affairs Committee and the House Permanent Select Committee on Intelligence.

President Trump defended Huang on Sunday, calling the Nvidia CEO a “fine person” who has “done such an incredible job.”

Trump told reporters, “I think he probably has an excuse for it,” adding Huang should remain Nvidia’s CEO.