Nvidia Share Price Falls Amidst CEO Jensen Huang Scandal, Probe
Nvidia’s share price, the world’s second-most valuable company (after Apple Inc.), fell 4.3% to close at $178 amid a scandal involving its chief executive officer, Jensen Huang.
The board has opened an independent investigation into the CEO after allegations that a former executive at Singapore-based Megaspeed, with whom Huang acknowledged a relationship, passed information to Beijing.
The board cited no reason to believe the affair compromised national security or company secrets, and added that Huang supports the review and will remain CEO while the probe continues.
The group does not have a traditional succession plan for its current chief. The stock fell as much as 8% during the session, wiping more than $180 billion off Nvidia’s market value before recovering from the day’s low.
Nvidia moved against a strong rebound in the rest of the market, with the tech-heavy Nasdaq up 2.74% on the day.
Chip stocks, which led last week’s sell-off on fears that a Democratic Congress would slow the build-out of AI data centres, recovered sharply at the start of the new week, with Advanced Micro Devices (AMD) rallying 13% and Broadcom up about 9%.
With 3Q27 results expected next Tuesday, the key concern seems less about Nvidia’s operational prospects and more about the company’s continued “highly dependent” on co-founder Huang, who remains closely tied to its strategy.
Beyond post-US midterms policy concerns, market participants now expect closer scrutiny of Nvidia’s sales in Southeast Asia and China, especially given the current geopolitical climate between the world’s largest economies.
The board’s investigation will likely keep the name under pressure until more is clear. NVDAB Dips Amidst Nvidia CEO Jensen Huang Corporate Scandal
