Shares of Nvidia plunged nearly 7.5% shortly after the market opened following reports that CEO Jensen Huang had acknowledged an extramarital affair, allegedly involving a Chinese intelligence operative.
The news triggered a sharp reaction among investors, sending Nvidia shares down to $172.75, compared with Friday’s closing price of $186.64.
The reported developments also prompted Nvidia’s board of directors to launch an independent investigation into whether Huang had been targeted by a foreign intelligence operation.
$335 Billion Wiped Off Nvidia’s Market Value
The sharp decline erased approximately $335 billion from Nvidia’s market capitalization, reducing the company’s estimated value to around $4.16 trillion, down from approximately $4.5 trillion at Friday’s close.
Shares had already fallen by approximately 6% in premarket trading, signaling investor concerns ahead of the opening bell.
The reported allegations have raised questions about potential corporate security risks and the possibility of foreign intelligence involvement involving one of the world’s most influential technology companies.
However, the claims concerning Huang and the alleged intelligence connection have not been independently established in the information provided.
Further details about the reported investigation and any potential findings have yet to emerge.
