Nvidia Shares Plunge as CEO Jensen Huang Faces Allegations of Extramarital Affair

Nvidia shares witnessed a sharp decline after allegations involving CEO Jensen Huang, including an alleged extramarital relationship and links to a suspected Chinese spy, triggered concerns among investors. The company's board has reportedly launched an internal investigation and assured stakeholders that no national security information or confidential company data had been leaked. However, the assurances failed to calm market sentiment. At the close of US markets on Monday, Nvidia shares had fallen 4.27% to $178.67, after dropping more than 8% at one point during intraday trading. The decline reportedly wiped out over ₹18 lakh crore in the company's market value. Investors are also concerned about the potential impact of the investigation on Huang's leadership, given his prominent role in Nvidia and the global AI industry.

Apart from the internal and government investigations, uncertainty surrounding massive AI investments has added to the pressure on Nvidia shares. Concerns over possible regulatory restrictions on data centre construction and electricity consumption following the Democrats' electoral victory have further weighed on investor sentiment. Meanwhile, US President Donald Trump expressed support for Huang, saying the FBI was investigating the alleged relationship between the Nvidia CEO and a suspected Chinese spy. Trump said he had personally spoken to Huang and asked whether he knew the woman was allegedly involved in espionage. According to Trump, Huang denied having any knowledge of her alleged activities, and the president said he believed his response.