Nvidia shares slump amid investigation into CEO Jensen Huang

In a letter to employees, Huang admitted to not being faithful to his wife, but did not elaborate on the details of the relationship.“NVIDIA’s Board of Directors has initiated an independent investigation.

I support the investigation and will cooperate fully,” Huang said in the letter.On Sunday, the firm announced the investigation. “The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders,” the company said in a statement.“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information.”The investigation puts….

Huang is Nvidia’s fifth-largest shareholder, owning 3.6 percent of the company, according to LSEG data.

However, Nvidia’s co-founder does not have majority voting control, unlike executives at other companies in the sector, such as Meta and SpaceX.The tech-heavy Nasdaq was not affected by Nvidia’s downturn on Monday, with the index up 2.7 percent in early trading.

Microsoft rose 2.2 percent, with chip maker AMD trading up over 10 percent on a new deal with Google and a stock analyst’s upgrade.

Digital and e-commerce giant Amazon rose 3.8 percent.The Dow Jones Industrial Average was up 1.7 percent, and the S&P 500 rose 2.1 percent.Analysts are sceptical that the controversy surrounding Huang will lead to him stepping down.“Founder-led companies outperform because one person carries the vision,” Michael Monaghan, portfolio manager of Founders 100 ETF, told Al Jazeera.“Based on the current information, I would see that as highly improbable [that he is removed].”This….

In October, The New York Times reported that the CEO had a relationship with the alleged China operative, Alice Huang, a former executive at the Singapore-based company Megaspeed.

The two Huangs are not related.Megaspeed, a data centre and cloud computing company, described itself as “a core business partner of NVIDIA’s computing power cloud business in the Asia-Pacific region” on its website.US authorities investigated and concluded that Alice Huang was a Chinese intelligence asset, although the Chinese government pushed back against those allegations.“The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” Chinese Foreign Ministry….

After markets settled following definitive results in the US midterm elections, candidates who ran on anti-AI platforms won overwhelmingly, giving Democrats, who are more critical of the AI industry than their Republican colleagues, control of both the House and the Senate in the new Congress.Additionally, all but one of the data centre ballot measures seeking to restrict construction of new facilities across the US passed, sending shares of major AI….

The longer this drags, the stronger they get,” Monaghan told Al Jazeera.

Huang admits infidelity, denies compromising Nvidia security as China spy inquiry shakes $4.5 trillion AI firm.