Nvidia Shares Plunge Further As CEO Jensen Huang Faces Scrutiny

Nvidia shares dropped 6.3 percent in Tuesday trade to reach a seven-month low of $166.50 each. This followed an earlier decline of 4.3 percent in the previous session. Investors grew worried about the chip maker's future after reports linked CEO Jensen Huang to a woman identified as a Chinese intelligence asset.

Investigation And Wealth

The company board started an internal investigation on Sunday. This came after Huang admitted in a staff memo that he was unfaithful to his wife and apologized to employees. The FBI is also checking if the 63-year-old CEO was targeted in a foreign operation. These issues surfaced after reports that Huang had a relationship with Alice Huang, a former executive at Singapore-based Megaspeed and a former television reporter in China. Megaspeed is one of Nvidia's largest customers in Southeast Asia and was investigated by US authorities. The latest drop in stock value cut Jensen Huang's net worth down to $145.6 billion from $154 billion. He also dropped to 12th place on the Forbes Real-Time Billionaires list. Nvidia is on track to lose around $400 billion in market value over two sessions if Tuesday losses hold.

Support And Earnings

US President Donald Trump, Elon Musk, and investor Bill Ackman have publicly supported Huang during this controversy. Nvidia co-founded by Huang in 1993 will report its quarterly earnings on November 17, where executives will likely face many questions about the situation.

Context

Nvidia is a major technology company that designs graphics processing units used heavily in computer gaming and artificial intelligence. Corporate leadership stability is very important for major tech firms, especially when they face sudden regulatory or personal investigations close to major financial reporting dates.