Nvidia shares edged higher in pre-market trading today, Nov 10, after losing more than 4% in yesterday's session as investors assessed the fallout from an investigation involving CEO Jensen Huang and his alleged personal relationship with a businesswoman suspected of having links to Chinese intelligence.
According to Investing.com data, Nvidia's market capitalisation fell from around $5.88 trillion when its shares hit a 52-week high of $243.37 on October 6 to approximately $4.31 trillion at Monday's close. The stock ended Nov 9 at $178.67, down more than 26% from its peak.
However, the stock was up around 1.8%, attempting a marginal recovery after Monday's sharp 4.27% decline. The rebound comes even as Nvidia remains deep in correction territory, having lost an estimated $1.57 trillion in market value since its Oct record high.
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The stock pressure follows reports that Huang had a close relationship with Alice Huang, a former executive at Singapore-based Megaspeed, a major Nvidia customer. The New York Times has reported that US intelligence officials believed she had passed information to Beijing and may have helped direct advanced Nvidia AI chips to China.
Nvidia's board has also launched an independent investigation into whether its CEO was targeted by a foreign intelligence operation. Additionally, Huang has acknowledged in an email to employees that he had been unfaithful to his wife, but the allegations concerning Alice Huang's intelligence links remain disputed. Nvidia's board has also shown confidence in Huang, and said it has no reason to believe that company secrets or US national security were compromised.
The controversy has also drawn the attention of US President Donald Trump, who on Monday, said he had spoken to Huang and asked whether he already knew the businesswoman was allegedly a spy. According to Reuters, Huang told him he had no idea, and Trump said he believed him. The president also confirmed that the FBI was looking into the matter and said he expected Huang to be in good shape.
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