Nvidia Shares Sink Amid CEO's Spy Probe, But Big Tech Boosts Wall Street

Nvidia shares tumbled more than 8 per cent as trading opened in the US markets hours after the company launched a probe into its Chief Executive Officer (CEO) Jensen Huang over his affair with a woman who is suspected of being a spy for China.

The shares of the artificial intelligence leader were down sharply at pre-market trading on the Nasdaq index, and at the opening bell nosedived more than 8 per cent to $171.80 apiece.

However, it quickly recovered some losses to trade at $177.85 at the time of writing this article. The stock was still down by around 4 per cent.

The revelation of Huang's affair has raised concerns over his future at the company, which he co-founded over 30 years ago, and made it the biggest company in the world over the decades. 

Nvidia Launches Probe

Nvidia's announcement regarding the CEO's investigation came hours after Huang's acknowledgement on Sunday that he had been intimate with a business executive. According to a New York Times report last month, US authorities suspected the executive, Alice Huang, was gathering information for China.

China has rejected the spying claims, with its foreign ministry calling the allegations a smear campaign against Beijing on Monday.

In an email to his employees on Sunday, Huang admitted to his affair and said he owed an apology to them and his family.

"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," he wrote.

Nvidia's board, in a statement on Sunday, said it was launching an independent probe "in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort".

It said the board "has confidence in Jensen".

"The Board prioritises US national and economic security, which is paramount to the interests of NVIDIA and its shareholders," it added