Board review follows alleged targeting as Nvidia stock falls and company opens probe into CEO Jensen Huang
Board launches independent review
Nvidia said Sunday that its board initiated an investigation after recent reporting that founder and CEO Jensen Huang had been targeted by a foreign intelligence effort. The company said a committee of independent directors would oversee the review with help from outside independent counsel.
Nvidia said Huang fully supports the review and will cooperate. The company did not provide further details about the investigation.
Reporting describes alleged plot
The New York Times reported late last month that a Chinese espionage plot centered on Alice Huang, an executive at Singapore-based data company Megaspeed, allegedly targeted Jensen Huang. The report said U.S. intelligence officials determined she was funneling information to Beijing and had developed a close relationship with him.
Alice Huang and Megaspeed International did not respond to ABC News’ request for comment after the report. Nvidia shared an internal message in which Jensen Huang told employees he had been “unfaithful” to his wife and said he was committed to earning back their confidence.
Briefing and market reaction
Nvidia shares fell more than 4% to $177.91 in Monday’s trading. U.S. stocks rose overall: the Dow gained 2%, the S&P 500 climbed 2.3%, and the Nasdaq advanced 2.6%.
Key points
- Nvidia shares dropped more than 4% Monday, reaching $177.91.
- The board appointed independent directors and outside counsel to oversee its investigation.
- The reported Chinese intelligence effort involving Huang may be raised at a congressional briefing.
- Nvidia’s market capitalization topped $4 trillion, according to figures as of Monday morning.