Nvidia shares drop 4.2% as FBI probes CEO's ties to alleged Chinese spy
President Trump says he spoke with Jensen Huang, who claimed he did not know the woman was an intelligence operative.
By Giulia Donovan ·
Shares of Nvidia fell 4.2 percent on Monday, marking the worst performance among Dow Jones and Nasdaq constituents. The drop followed a weekend announcement that the company's board launched an independent probe into the personal life of CEO Jensen Huang.
The investigation stems from reports that Huang maintained an extramarital relationship with Alice Huang, a woman identified by U.S. intelligence agencies as a Chinese spy. The two Huangs are not related. Jensen Huang confirmed on Sunday that he had been unfaithful to his wife and apologized to employees.
President Donald Trump addressed the situation during an impromptu press conference at the White House on Monday. He stated that he called Huang earlier that day to check on him. According to Trump, Huang told him he had absolutely no idea the woman was a spy.
Trump said, “He said: ‘I had no idea that she was a spy, and I really believe him’.” The President added that he is confident Huang will remain at the helm of the world's second largest public company. “I think he will be fine,” Trump said.
The FBI is currently investigating the matter. In a statement released Sunday, the Nvidia board said it was initiating the independent review in light of recent reports that Huang was the target of a foreign intelligence effort.
Congressional scrutiny intensified on Monday. Representative Hakeem Jeffries, a Democrat from New York, requested a full briefing on the issues surrounding Nvidia. Jeffries is expected to become the next Speaker of the House in January.
Senators Elizabeth Warren and Jim Banks issued a joint statement calling for decisive action on oversight of artificial intelligence companies. They wrote that the revelations make national security concerns more urgent and raise important questions that Nvidia must answer.
Company spokespersons did not immediately respond to requests for comment on Monday. Nvidia previously indicated that Huang would remain CEO despite the disclosures.
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