Nvidia shares fall 4% after probe into alleged Chinese intelligence targeting CEO

Developing story first seen 2 hours ago

BBC Business · 2 hours ago

Nvidia shares fell about 4% by Monday’s close after the company announced an independent investigation into reports that chief executive Jensen Huang had been targeted by a Chinese intelligence effort. The developing story has prompted scrutiny of possible national security risks and could affect confidence in the chipmaker, whose technology is central to the AI industry.

US intelligence officials reportedly believe Alice Huang, a business executive whose company dealt with Nvidia, was a spy for Beijing; China has rejected the allegations as groundless. Jensen Huang acknowledged an affair, apologised to his family and said he would co-operate with the investigation, while Nvidia said it had no reason to believe its secrets or national security were compromised. About $250bn (£190bn) was wiped from the company’s market value, and Huang has been asked to brief congressional committees; analysts said the impact could be short-lived but noted there is no obvious successor if he were removed.

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In short

Nvidia shares fell about 4% after it announced an investigation.
The company says it has no reason to believe secrets were compromised.
Huang is due to brief US congressional committees.

How this story developed

10 minutes ago The shares’ reported fall widened to about 6%, while the allegations, Huang’s apology for an affair and his agreement to co-operate, and a potential congressional briefing kept attention on Nvidia’s security and leadership; the company’s market value was reported to have fallen by about $250bn (£190bn).
21 minutes ago Nvidia’s shares dropped about 4% on Monday after it opened an independent inquiry into reports that Chinese intelligence had targeted chief executive Jensen Huang, prompting national security concerns as the company said it had no indication its secrets were compromised.