- Nvidia shares dropped 8.27% in after-hours trading following scandal reports
- The stock decline erased about $280 billion from Nvidia's market value
- Reports allege CEO Jensen Huang had an extramarital relationship with an executive
Chipmaker Nvidia shares fell sharply in after-hours trading on Wednesday after reports about an alleged relationship between CEO Jensen Huang and a company executive, along with reports that the company's board was discussing his future.
The stock was trading 8.27% lower at $159.37 in after-hours trading at the last check, after closing 2.87% higher at $173.73 during the regular trading session.
The decline wiped out around $280 billion in Nvidia's market value. The company's market capitalisation stood at $4.08 trillion at Wednesday's regular market close. Based on its after-hours share price of $159.80 and 24.14 billion outstanding shares, Nvidia's market capitalisation fell to approximately $3.86 trillion, marking a decline of around $280 billion.
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The decline followed a report by The New York Times that Huang had an extramarital relationship with an Nvidia executive. The Wall Street Journal subsequently reported that the company's board was preparing to remove Huang from his position.
The latest reports come amid earlier allegations involving Huang and Singapore-based businesswoman Alice Huang, who has been accused of having links with Chinese intelligence. Questions have also been raised about the movement of Nvidia chips to Chinese firms.
Nvidia's board has launched an independent investigation into the allegations, while US lawmakers have sought briefings from Huang. The company has said it has no reason to believe that US national security or its business secrets have been compromised.
Huang co-founded Nvidia nearly three decades ago and has led the company through its growth into one of the world's largest technology companies.
READ | Morgan Stanley Drops Nvidia As Top Pick After Nearly 10% Slide On Jensen Huang Scandal
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