Continuing reports have deepened investor concerns over the relationship between Jensen Huang and a businesswoman accused of being a Chinese spy, wiping about US$430 billion (S$550.9 billion) off Nvidia’s market value over two trading days.
Nvidia shares have continued to slide after chief executive Jensen Huang admitted to an extramarital affair, falling 9.51% over the past two trading days to US$168.89.
Reuters reported on Wednesday (11 November) that there were allegations that Nvidia exported at least US$7.5 billion worth of chips to China as a result of Huang’s relationship with Alice Huang.
The report also cited reports that US Secretary of State Marco Rubio had previously briefed US President Donald J. Trump on the matter, further escalating the fallout from the affair on several fronts.
US Senate Democratic leader Chuck Schumer demanded an explanation from the administration and called for tighter restrictions on chip exports to China.
The allegations have turned Huang’s personal conduct into a broader risk for Nvidia, raising investor questions about the company’s governance and whether it is too dependent on him. Huang has led Nvidia for more than 30 years since founding it, building it into one of the most important suppliers of artificial intelligence (AI) chips amid the AI boom in recent years.
Huang holds about 3.6% of Nvidia’s shares and does not have majority voting control. But he oversees an unusually flat organisation, with more than 60 executives reporting directly to him.
Reuters reported that the US Federal Bureau of Investigation (FBI) is separately investigating whether Huang, 63, was targeted by a foreign intelligence agency. Nvidia’s independent directors have also hired external lawyers to investigate.
According to CNBC, Huang apologised to executives at a closed-door meeting on Monday (9 November) before shifting his attention back to the business. He returned to Nvidia’s headquarters on Tuesday (10 November) to chair meetings.
Nvidia said its board currently had no reason to believe that information relating to US national security or company secrets had been compromised. Huang has also pledged to cooperate with the internal investigation.
