“Nvidia” shares fall about 4% amid investigation into CEOʼs ties to alleged Chinese spy

“Nvidia” shares lost about $250 billion in value in one day, falling about 4%. This is due to the fact that the company began an investigation into CEO Jensen Huangʼs connection to a woman who American intelligence suspects of spying for China.

The BBCwrites about this.

Due to this, shares of other tech companies rose:

• AMD — by 13.26%,
• Amazon — by 2.94%,
• Microsoft — by 2.75%.

Analysts believe that the scandal is unlikely to have a long-term impact on stocks — “Nvidia” remains one of the key players in the AI industry.

In late October, The New York Times reported that American intelligence agencies suspect Chinese businesswoman Alice Huang of passing information to China. The publication claimed that the woman has close ties to “Nvidia” CEO Jensen Huang and works for the Singapore-based company “Megaspeed”, which bought $4.8 billion worth of “Nvidia” chips over two years. After that, the “Nvidia” board of directors launched an independent investigation into possible espionage. Jensen Huang agreed to cooperate.

He also admitted to an extramarital affair with a businesswoman and apologized to his family and colleagues, but did not comment on the womanʼs possible ties to Chinese intelligence. Republicans in the US Congress invited the “Nvidia” CEO to a closed briefing on protecting the company from foreign espionage.

Trump said he personally asked Huang if he knew about the alleged spying. The CEO said he didnʼt, and the president said he believed him. Trump also said FBI was looking into the matter.

• “Nvidia” is one of the worldʼs largest makers of artificial intelligence chips. Its technology is used to power supercomputers, data centers, and AI training. The company plays an important role in the technological confrontation between the United States and China, as Washington restricts the supply of advanced American chips to China.

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