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Nvidia’s value tumbles by $430bn since spy allegations, as major US law firm hired to investigate claims – business live
Nvidia has hired former federal prosecutor Joon H. Kim and his law firm to investigate allegations involving chief executive Jensen Huang and a woman whom US officials suspect of spying for China. The company says the inquiry will be thorough and independent, as the claims have put pressure on Nvidia and its leadership.
Nvidia shares fell almost 5.5% on Tuesday, after dropping 4.27% on Monday. The company’s value is now reported at $4.07 trillion, down from $4.50 trillion before the story emerged last weekend. Beijing has denied operating an espionage effort targeting Huang; the article identifies the woman as Alice Huang, head of Nvidia customer Megaspeed.
In short
- Nvidia has launched an independent investigation into spy allegations.
- Its market value has fallen by about $430 billion.
- Beijing denies targeting Jensen Huang.
Explained simply
Nvidia is a US technology company best known for making chips used in artificial intelligence and gaming. Its chief executive, Jensen Huang, leads the company, whose shares are traded publicly and whose value can rise or fall with investors’ expectations.
The allegations concern a woman identified as Alice Huang, who leads Megaspeed, a customer of Nvidia. US officials suspect her of spying for China; Beijing denies running an espionage effort targeting Jensen Huang. Nvidia has asked former federal prosecutor Joon H. Kim and his law firm to investigate the claims independently.
The matter draws attention because it involves a major technology supplier, its chief executive and claims touching on US-China relations. Investors’ response to the news has also affected Nvidia’s share price and reported market value.