Nvidia shares slump amid investigation into CEO Jensen Huang

Nvidia shares fell more than 4 per cent after the company announced an independent investigation into whether its chief executive, Jensen Huang, had been targeted by a Chinese intelligence operation. The inquiry puts the leadership of the $4.5 trillion chipmaker under scrutiny, although the company said it had no reason to believe national security or its secrets had been compromised.

Reports have linked Huang to Alice Huang, a former executive at Nvidia partner Megaspeed, whom US authorities reportedly identified as a Chinese intelligence asset; the two are not related, and China has rejected the allegation. Huang said he would co-operate with the board’s investigation and acknowledged being unfaithful to his wife, without giving details. He owns 3.6 per cent of Nvidia, but analysts considered his departure unlikely; wider US markets rose as Nvidia fell.