Espionage investigation at Nvidia shakes shares and market value

US chipmaker Nvidia has come to the forefront following a sharp decline in its shares after espionage allegations raised against CEO Jensen Huang and an independent investigation initiated within this scope.

US chipmaker Nvidia initiated an independent investigation following allegations that CEO Jensen Huang had a relationship with Alice Huang, who is claimed to have ties to Chinese intelligence. According to reports in The New York Times, Alice Huang, a former executive at Megaspeed, was alleged to have leaked information to the Beijing administration, sparking espionage debates in the US. The Nvidia Board of Directors announced the launch of the investigation in a statement on November 8.

In a message sent to his employees, CEO Jensen Huang stated that he was unfaithful to his wife, and that he would support the independent investigation initiated by the company's board of directors and fully cooperate with it. Huang expressed his commitment to protecting Nvidia and supporting the national security of the US. Following these developments, Nvidia shares lost 4.3 percent in value, causing the company to decouple negatively among global tech stocks and suffer a market value loss of approximately 200 billion dollars.

The process was also reflected in a lawsuit petition filed in the US District Court for the Northern District of California. The petition alleged that Nvidia and Jensen Huang misled investors by violating relevant provisions of the Securities Exchange Act of 1934.