NVIDIA shares drop 7.03% after Jensen Huang affair prompts probe
NVIDIA's stock took a 7.03% hit after CEO Jensen Huang admitted to an affair with Alice Huang, a former executive at Singapore-based data center company Megaspeed International.
The news triggered concerns about possible foreign intelligence ties, leading NVIDIA to start an independent investigation.
The company said it had no reason to believe that either US national security or NVIDIA's confidential information had been compromised.
Jensen Huang apologizes, China denies espionage
Jensen Huang apologized to his family and team, has agreed to cooperate with the investigation.
China has strongly denied any espionage links involving Alice Huang, but the incident puts extra spotlight on NVIDIA's China operations, especially with current US restrictions on AI chips.
Despite the drama, Bernstein still rates NVIDIA Outperform but warn this could mean more scrutiny ahead.