Nvidia Shares Drop Following Allegations of Foreign Intelligence Targeting CEO Jensen Huang
Nvidia has launched an internal investigation following allegations that CEO Jensen Huang was the target of a China-linked foreign intelligence operation. Following this development, the company's shares fell by more than 5%.
AI chip manufacturer Nvidia announced that it has launched an official internal investigation following reports that CEO Jensen Huang was the target of a foreign intelligence effort linked to China.
Nvidia's announcement on Sunday came after Huang acknowledged having a close relationship with a business executive identified by U.S. intelligence as gathering information on behalf of China, as reported by The New York Times. The company's shares fell $10.48 to $176.16 in response to the news, bringing the total decline over the last 30 days to 23 percent.
Dan Ives, a partner at Yorkville Ives & Co., stated that while it is unlikely Huang will step down, the situation could increase regulatory scrutiny in Washington regarding chip restrictions on China. Nvidia's advanced processors are at the center of U.S. export restrictions aimed at limiting China's access to advanced technology.
Sources
- usnews.com · Link