Nvidia heads for US$470 billion two-day wipeout as CEO affair fallout deepens

Résumé détaillé

Its shares fell more than 6% following a 4.3% drop on Monday Read more at The Business Times.

NVIDIA shares extended losses on Tuesday (Nov 10), putting the chip giant on track to shed more than US$470 billion in market value over two sessions as concerns mounted over the fallout from CEO Jensen Huang’s affair with a Chinese businesswoman alleged to be a spy for Beijing.

The CEO’s relationship with Alice Huang helped facilitate shipments of at least US$7.5 billion worth of Nvidia chips to Chinese firms, The Information reported on Tuesday, citing two people who know her. Alice Huang and Jensen Huang are not related.

Nvidia‘s board launched an internal investigation on Sunday, and its independent directors on Tuesday said they had retained former acting US Attorney Joon Kim and law firm Wachtell, Lipton, Rosen & Katz to lead the company’s investigation.

The FBI is separately examining whether the 63-year-old Huang was targeted by a foreign intelligence operation. Huang has told employees he was unfaithful to his wife but provided no details about the relationship.

President Donald Trump said on Monday he had spoken with Huang and asked whether he knew the woman was allegedly a Chinese spy. Trump said Huang told him he had “absolutely no idea” and that he believed the Nvidia CEO.

Trump also said he had not known about the alleged ties when Huang accompanied him to China in May.

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However, the New York Times reported on Tuesday that Secretary of State and national security adviser Marco Rubio had briefed Trump aboard Air Force One en route to China about US intelligence indicating Huang was involved with a woman believed to be a Chinese spy.

The briefing marked at least the second time in seven months that Trump had been told about the intelligence, the NYT reported, citing people with knowledge of the matter.

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