Nvidia Shares Fall 5.7% as Questions Surround CEO Jensen Huang

Shares drop in early trading

Nvidia shares lost $10.40, or 5.7%, to reach $176.24 shortly after the market opened Monday. The decline followed news of the board’s investigation into allegations involving Huang. The stock had already fallen almost 20% over the prior month as investors questioned valuations among companies driving AI growth. Monday’s drop added to that broader pressure on Nvidia shares.

Analyst raises CEO questions

Dan Ives, a tech analyst at Yorkville Ives, said the controversy could prompt several congressional inquiries and weigh on the stock. He identified Huang’s continued role as CEO as a key question for investors.

Ives described the episode as a damaging moment for Huang in a research note. His comments focused on the potential impact of the allegations on Nvidia and its leadership.

China rejects allegations

China’s government denied targeting Huang in an espionage operation. Guo Jiakun, a spokesperson for the Ministry of Foreign Affairs, called the claims baseless and defamatory. The board investigation concerns allegations that China targeted Nvidia’s chief executive in an intelligence effort. The article does not provide further details about the investigation.

Huang advocated chip sales

In recent years, Huang has pressed U.S. authorities to ease restrictions on Nvidia chip sales to China. President Trump approved sales of Nvidia’s H200 chips this year; although they are not the company’s most advanced models, they are considered important products.

Huang had also sought permission to sell the less-advanced H20 chips, which were designed to comply with U.S. export restrictions on China.