Nvidia probes allegations involving Jensen Huang as shares drop 8%

The article reports that Nvidia’s board has opened an independent investigation after allegations involving CEO Jensen Huang and an executive whom US intelligence suspects was recruited by China’s Ministry of State Security. Huang acknowledged being unfaithful to his wife, apologised to employees and pledged to co-operate; the allegations do not establish that he shared sensitive information or knowingly worked with foreign intelligence. The board says it has no reason to believe company secrets or US national security were compromised and expressed confidence in his leadership.

Nvidia shares fell by as much as 8%, briefly putting about $350 billion in market value at risk, though the S&P 500 and Nasdaq rose on Monday morning and other semiconductor shares also advanced. The company’s market capitalisation had already dropped from about $5.78 trillion on 6 October to $4.51 trillion on 6 November, amid concerns about AI spending. Huang has led Nvidia since co-founding it in 1993, and analysts say his departure could unsettle investors given his central role and the lack of an obvious successor; the investigation has not yet established business or security failures.