Nvidia opens probe as shares fall 5%

Nvidia (NASDAQ:NVDA) has opened an independent board investigation into reports that CEO Jensen Huang was targeted by foreign intelligence, as shares fell 5% in premarket trading.

The inquiry follows media reports alleging that Huang had a relationship with Alice Huang, a former Megaspeed executive whom U.S. intelligence reportedly suspected of gathering information for Beijing, although Jensen Huang did not identify the person involved in his employee email.

"While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board's inquiry will examine all available information," said Nvidia's board of directors.

Independent directors, supported by outside counsel, will oversee the investigation, while three Republican House committee chairs have requested a closed-door briefing from Huang, and Nvidia says he will remain CEO without interruption.

Following the announcement, Nvidia shares were down 5% at US$177.32 in premarket trading, compared with Friday's closing price of US$186.64.

Nvidia's advanced processors power data centres and computing systems used to train and run artificial intelligence models, while U.S. export controls seek to restrict China's access to advanced semiconductor technology.

Megaspeed has faced scrutiny over suspected efforts to help Chinese companies access restricted AI chips, while Singapore said it had not investigated Alice Huang and China rejected the espionage allegations.