Nvidia shares set to slide as spy scandal threatens AI recovery

Nvidia shares fell 5.8 per cent in early German trading on Monday after the company said it would investigate reports that its chief executive, Jensen Huang, had been targeted by Chinese intelligence. The allegations have not been established as findings against Huang, but the controversy adds uncertainty for investors as Nvidia tries to recover from a technology sell-off and approaches its quarterly results.

Nvidia was trading at €157.84, or £131.67, nine days before reporting earnings. Its shares had risen more than 7 per cent early on Friday but remained about 22 per cent below their October peak; Thursday’s sell-off wiped $2.5 trillion from the Nasdaq. Nvidia’s board appointed independent directors and outside lawyers to investigate, while saying it had no reason to believe national security or confidential company information had been compromised. China denied involvement, and other major Asian chipmakers rose on Monday.