Nvidia Stock Drops Amid Board’s Investigation into CEO Jensen Huang’s Affair With Alleged Chinese Spy
Nvidia is paying the price for CEO Jensen Huang‘s extramarital affair.
On Monday, November 9, the California-based technology company’s stock price dropped, CBS News reported. The chipmaker’s shares fell by 5.7 percent, or $10.40, to $176.24, reducing the market valuation by $247 billion.
The stock took a downturn after it was reported that Huang, 63, had an affair with a woman who U.S. intelligence officials believe was a Chinese source.
In a Sunday, November 8, press release, the company announced that its “Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort.”
“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 press release read.
Also Sunday, Huang emailed staffers to apologize and express his regret about the situation, admitting, “I owe my family and all of you an apology. I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” per Axios.
“To my colleagues at NVIDIA, including those I have worked alongside for decades, and to our board, partners, and shareholders around the world: you deserve better from me,” he continued. “Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.”
“Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully,” Huang added. “I love our country and our company, and I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American.”
Huang cofounded Nvidia in 1993, taking the public company in 1999, according to Forbes. His current net worth is $153.1 billion.
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