- Nvidia shares fell over 4% after CEO Jensen Huang admitted an extramarital affair
- The board ordered an independent probe into possible foreign intelligence targeting Huang
- Huang apologized to family and shareholders, affirming commitment to Nvidia’s future
Nvidia shares slipped in overnight trading on Monday. The fall came hours after co-founder and chief executive Jensen Huang admitted to an extramarital affair, and the company's board ordered an independent investigation into whether he had been the target of a foreign intelligence effort.
On the Hyperliquid exchange's perpetual futures and the Blue Ocean after-hours system, Nvidia traded at around $178.60, Reuters reported. That is more than 4% below Friday's Nasdaq close of $186.64. Regular trading in New York opens at 8 pm IST.
Chris Weston, head of research at brokerage Pepperstone in Melbourne, reads that number as a verdict on Huang's future. He told Reuters he did not expect Huang to be replaced. If investors genuinely believed the CEO was on his way out, Weston said, "it would be an absolute bloodbath, to be honest."
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Weston's argument is simple, as a 4% drop is a hit to sentiment, not a vote of no confidence. He told the news agency that the episode does the stock no favours at a time when investors are already arguing over the pace of the data-centre build-out.
That backdrop matters as well, as Nvidia was already about 22% below its October high before the weekend, weighed down by doubts over AI spending and how Big Tech will pay for its data-centre expansion.
Nvidia's Asian suppliers went the other way on Monday, with TSMC jumping 6.5%, SK Hynix rising 4.7% and Samsung Electronics gaining 2.9%, recovering from last week's selloff in AI-linked stocks.
How The Huang Row Unfolded
The New York Times reported last month that Huang had a close relationship with Alice Huang, a former executive of Singapore-based Megaspeed who is not related to him. The newspaper said US authorities had concluded she was a Chinese intelligence asset. Beijing has rejected the allegations, and no charges have been filed against Huang or Nvidia.
On Sunday, Huang wrote to employees admitting he had been unfaithful to his wife. He apologised to his family, colleagues, the board and shareholders, but did not name the woman. He said he remained fully committed to Nvidia.
The same day, the board said a committee of independent directors, assisted by outside counsel, would run the inquiry. It said it had "no reason to believe that either national security or NVIDIA secrets were compromised" and that it had confidence in Huang.
US President Donald Trump said he had not spoken to Huang about the matter. Asked if he expected Huang to remain CEO, he replied: "I think so. Sure."
Hard To Replace
Huang co-founded Nvidia in 1993 and has run it for more than three decades. In that time, he took it from a maker of graphics cards for gamers to the main supplier of chips behind the AI boom. He remains closely involved in product strategy and in relationships with the company's largest customers.
There is a corporate precedent for a CEO leaving over a relationship. In 2018, Intel's Brian Krzanich resigned after an internal probe found that a past relationship with an employee broke company policy. Chief financial officer Robert Swan stepped in as interim CEO.
Huang's case is different on paper. The woman involved worked for a customer, not for Nvidia, and the company has not said any internal policy was breached.
The fallout has still reached the company's schedule. Huang's daughter Madison, an Nvidia executive, cancelled a planned trip to Seoul for an Nvidia conference that was due to begin on Monday.
ALSO READ | Trump Backs Nvidia's Jensen Huang Amid 'Chinese Spy' Row, Says He Has 'Done An Incredible Job'
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