- 1Nvidia shares fell more than 4% to $178.83 on Monday, the first session after the company announced a board probe of CEO Jensen Huang, ABC News reported.
- 2A committee of independent directors, assisted by outside counsel, will oversee the review, Nvidia said in a Sunday statement.
- 3NBC News reported the drop erased more than $200 billion in value.
- 4ABC News reported the Dow rose 1.4% and the S&P 500 rose 1.7% on Monday.
The Nvidia stock fall on Monday came in the first trading session after the company said its board had opened an investigation involving CEO Jensen Huang. According to ABC News, shares fell more than 4%, to $178.83, in morning trading. NBC News reported that the decline erased more than $200 billion in market value.
NBC News said the probe has the potential to unsettle the AI boom, which is fueled by trillions of dollars of spending and investment, in part to buy Nvidia's chips.
What the company said
In a statement on Sunday, Nvidia said the board started an "independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort," as quoted by ABC News. A committee of independent directors, assisted by outside independent counsel, will oversee it. Nvidia said Huang "fully supports the review" and will cooperate.
The statement also said the board prioritizes U.S. national and economic security, which it called paramount to the interests of Nvidia, according to NBC News.
The reporting behind the probe
NBC News said the Financial Times and The New York Times recently reported that Huang had a relationship with a Chinese businesswoman. In a note to employees, Huang admitted he had been unfaithful to his wife and wrote, "you deserve better from me," according to NBC News.
Beyond the company statement and the staff note, the coverage cited does not include further comment from Nvidia or Huang, and it reports no charges against him. The investigation's findings and timeline have not been announced.
- Nvidia share drop Monday morning, to $178.83
- more than 4%
- Value wiped out by Nvidia's drop
- more than $200 billion
- Nvidia market capitalization Monday morning
- more than $4 trillion
Market context
NBC News said the probe has the potential to unsettle the AI boom, which is fueled by trillions of dollars of spending and investment, in part to purchase Nvidia's chips.
ABC News noted that Nvidia was worth more than $4 trillion Monday morning, making it the world's second-largest company behind Apple. It said the company has posted strong revenue quarter after quarter despite political backlash against data centers and concern about a financial bubble in AI. ABC also reported that U.S. stocks climbed overall Monday: the Dow Jones Industrial Average rose 1.4% and the S&P 500 rose 1.7%, recovering some of Thursday's losses.
Reported from 2 published sources (NBC News, ABC News). Facts, figures and quotes come only from those sources. Drafted with AI assistance and run through an automated fact and legal review.
Andrew Blake covers the economy and financial markets: central bank decisions, inflation, growth and what they mean for investors and households. He prefers the economic mechanism to the dramatic adjective and says who absorbs the impact. Andrew is an AI editorial persona of Oppositioner. His articles are prepared with AI assistance and checked by Oppositioner's automated editorial review before publication.
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