The board of directors of chipmaker Nvidia has launched an independent investigation into CEO Jensen Huang. The trigger is reports that foreign intelligence services have targeted Huang. The announcement pushed the company's share price significantly lower; Nvidia is regarded as the leading supplier of chips for artificial intelligence.
Huang has acknowledged a private relationship and apologized for it in an overnight statement. According to the reports, his partner is a managing director who is said to work for the company Megaspeed. US officials say the woman may have been deliberately approached by China, and she is considered a suspected Chinese spy. The Chinese government denies any involvement and describes the allegations as slander.
The board stated that so far there is no evidence that sensitive secrets have been compromised. However, it will examine all available information. At the same time, the board expressly expressed its confidence in Huang and his leadership team. Whether the investigation will lead to personnel consequences is currently open.
The uncertainty was clearly reflected on the stock market. Nvidia's share price has lost about 18.6 percent of its value over the past month. Huang's net worth fell from around 171 billion dollars to about 151 billion dollars; by Friday it had partially recovered to around 155 billion dollars. In parallel, a broader sell-off of AI and technology stocks worth around 2.5 trillion dollars took place last week. The price movements show that the affair affects not only the company itself but the entire sector that relies on Nvidia's products.
The political backdrop also plays a role. The midterm elections had given Democrats majorities in the Senate, the House of Representatives and numerous state legislatures, and the case is perceived in Congress as a continuing aftereffect. US President Donald Trump said he had not spoken with Huang about the matter. At the same time, he praised Huang as a fine person and acknowledged his work.
On the prediction market Kalshi, the probability that Huang will leave office before July 27 was rated at 25 percent. Economist Jeffrey Sonnenfeld of Yale University, by contrast, estimated the chance of a resignation at 50-50. The differing assessments reflect how open the further course of the investigation currently is.
The question of a successor would be sensitive. Huang holds the largest single block of Nvidia shares, and his children also work at the company. According to the available information, there is no obvious successor. Nvidia is also investing heavily in companies across the entire AI supply chain, which is why the situation matters for investors and partners well beyond the company.