Nvidia Stock Falls After Company Opens Probe Into CEO

Nvidia shares fell more than 4% on Monday to $177.91 in the first trading session after the chip giant announced an independent investigation into CEO Jensen Huang, abcnews.com reported.

The board initiated the independent review after recent reporting that Huang was the target of a foreign intelligence effort, according to a company statement. A committee of independent directors, assisted by outside independent counsel, will oversee the probe. Huang fully supports the review and will cooperate with it, the company stated.

The New York Times reported late last month that Huang was targeted in an espionage plot involving Alice Huang, a top executive at Megaspeed International. U.S. intelligence officials determined she was funneling information to Beijing and had developed a close relationship with the Nvidia CEO. Neither Alice Huang nor Megaspeed International responded to requests for comment, while the Chinese government denied the allegations as baseless smears.

Nvidia shared an internal message on Sunday in which Huang told employees he was unfaithful to his wife. “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang wrote. He added that his responsibility was to serve staff, partners and shareholders, noting he had fallen short of that trust.

The Gang of Eight, a group of top congressional and intelligence leaders, was expected to receive a general national security briefing on Monday from CIA Director John Ratcliffe and Director of National Intelligence Jay Clayton. Minority Leader Hakeem Jeffries stated on CBS News Monday morning that the alleged Chinese spy plot involving Huang would likely come up during the briefing.