Shares of US semiconductor giant Nvidia reportedly fell sharply in late-night trading on Sunday following reports that the company’s board had launched an independent investigation into Chief Executive Jensen Huang over an alleged relationship that has raised counterintelligence concerns.
Nvidia’s stock declined approximately 4.2% on the Robinhood trading platform as investors reacted to the reported developments.
According to the reports, the inquiry followed Huang’s acknowledgment of an extramarital affair in a company-wide memorandum circulated over the weekend, in which he apologised to employees, board members and shareholders.
The allegations centre on a reported relationship between Huang and a former executive of Megaspeed International, whom US intelligence agencies reportedly suspect of having connections to Chinese intelligence.
The intelligence suspicions remain allegations, and the reports do not establish that the former executive engaged in espionage or that Huang knowingly compromised sensitive information.
US Secretary of State Marco Rubio reportedly oversaw the preparation of a classified intelligence memorandum earlier this year, alerting senior administration officials to potential counterintelligence risks associated with the relationship.
Huang has reportedly pledged to cooperate fully with the independent board investigation while reaffirming his commitment to US national security and Nvidia’s business operations.
Despite the reported decline in Nvidia’s late-night share price, the company’s Asian suppliers showed limited reaction, with their stocks largely following a broader recovery among technology companies.
The developments come as Nvidia, a leading supplier of advanced chips used in artificial intelligence systems, faces increased investor scrutiny.
Its shares have experienced selling pressure since last month amid concerns about technology-sector spending and uncertainty following the US midterm elections.
The reported investigation introduces additional questions about corporate governance and the handling of potential security risks at one of the world’s most prominent technology companies.
The allegations, the reported internal memorandum and the existence and scope of the board inquiry have not been independently verified in this report.