Share price of Nvidia fell up to 6% during trade after the opening bell of the US stock market indices on Monday. This continues the previous week's offloading. The AI chipmaker may lose close to $350 bilion in market value from the preceding closing value.
This development comes after the company commenced an independent investigation after reports that its founder and chief executive officer (CEO) Jensen Huang was reportedly targeted by China's intelligence agencies. The reports stated that the China's Ministry of State Security recruited Alice Huang, a former executive at Megaspeed International, a Singapore-based data centre.
ALSO READ: Long-Term Silicon Pivot? What The Nvidia CEO Scandal Means For Korean Chipmakers
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
US intelligence officials came to believe Alice Huang was passing information to Beijing, while Jensen Huang had an affair with the former. The Nvidia CEO confirmed the infidelity. He added that the firm would undertake an independent investigation to determine wether US national security or the company's confidential information had been compromised.
" I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.....Regarding the national security concerns raised in news reports, NVIDIA's Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America's national security. I am proud and grateful to be an American," he wrote in an e-mail.
While the company's stocks fell, some of the biggest names powering their AI endeavours with Nvidia's technology were moving in the opposite direction, with Amazon rising 2.93%, Meta gaining 2.07%, Alphabet shares up 1.74%, Microsoft adding 1.53% and Apple rising around 0.61%.
ALSO READ: Nvidia Falls, Its Biggest Customers Rise: What The Odd Pre-Market Picture Shows
Amazon Web Services, for instance, is a major buyer of Nvidia's computing infrastructure. In August 2026, both the companies had announced plans to deploy two million extra Nvidia GPUs across AWS's global infra, along with deeper integration of Nvidia's CPUs and networking technology. Meta, also, has been expanding its partnership with Nvidia across chips, networking and data centre infra. An agreement in February covered millions of Blackwell and Rubin GPUs, as well as Nvidia CPUs. The companies also announced further collaboration in October on Meta's Muse family of AI models.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
