The recent decline in Nvidia's stock accelerated to a seven-month low of $166.5 following a combined two-day drop that wiped out extensive market capitalization. Turmoil intensified after reports emerged of a board investigation triggered by Jensen Huang's internal apology to staff regarding marital infidelity. Federal authorities are also examining Huang's reported association with former Megaspeed executive Alice Huang, who was identified as a Chinese intelligence asset. Despite the controversy, high-profile figures including Donald Trump, Elon Musk, and Bill Ackman have publicly voiced support for the embattled co-founder.
Key points
The combined two-day market downturn puts Nvidia on track to lose an estimated $400 billi…: The combined two-day market downturn puts Nvidia on track to lose an estimated $400 billion in total market value.
Jensen Huang's personal net worth decreased to $145.6 billion, lowering his standing on t…: Jensen Huang's personal net worth decreased to $145.6 billion, lowering his standing on the Forbes billionaire list.
Investors and analysts are expected to scrutinize the ongoing executive controversy durin…: Investors and analysts are expected to scrutinize the ongoing executive controversy during the company's scheduled November 17 earnings call.
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Nvidia shares came under another round of selling pressure in Tuesday's trade, falling 6.3% to hit a seven-month low of $166.5 apiece, following a 4.3% decline in the previous session.
Investors appeared concerned about the chip giant's future prospects amid reports surrounding CEO Jensen Huang's alleged relationship with Chinese businesswoman Alice Huang, who has reportedly been identified as a Chinese intelligence asset.
As the CEO of the company at the heart of the AI boom, Huang's leadership and future at Nvidia are particularly important to investors. The latest sell-off comes just days before the company is scheduled to report its quarterly earnings on November 17.
The latest stock decline follows reports that Nvidia's board launched an internal investigation into Huang on Sunday after he reportedly admitted in an internal staff memo that he had been unfaithful to his wife and apologised to employees.
In addition, the FBI is reportedly examining whether the 63-year-old Huang was targeted as part of a foreign intelligence operation.
These allegations came to light after The New York Times reported last month that Huang had a…
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