Nvidia Shares Plunge After Jensen Huang Admits Affair
Nvidia shares plunged on the U.S. New York Stock Exchange on Tuesday (local time) after CEO Jensen Huang admitted to an affair with a woman identified as a Chinese spy. As of 9:40 a.m. Eastern Time that day, Nvidia shares were trading at $175.12, down 6.17% from the previous session, and at one point fell as much as 8.79% intraday to $170.24.
CEO Jensen Huang admitted to the affair, saying, "I was unfaithful to my wife," and "My actions have hurt my wife and children, and there is no excuse for what I have done," before apologizing to his family and employees. He stressed, "I will do my utmost to protect Nvidia and safeguard U.S. national security."
The woman at the center of the affair is Alice Huang, a former executive at Singapore-based data center company MegaSpeed. She has been under surveillance by U.S. intelligence authorities on suspicion that she approached CEO Jensen Huang in an attempt to gather classified information on AI semiconductors and U.S. government developments.
In a statement the previous day, Nvidia's board of directors said, "Regarding recent reports that founder and CEO Jensen Huang has been targeted by a foreign intelligence agency, we have launched an independent investigation." The board drew a line, saying, "There is no evidence to suggest that U.S. national security or Nvidia's confidential information has been leaked," adding, "We have confidence in Jensen Huang and his management team."
With CEO Jensen Huang's position thrown into uncertainty pending the board's investigation, investors are voicing concerns over a possible leadership vacuum. Attention is also focused on the impact this incident could have on the global AI ecosystem.
