Nvidia stock falls 3% as scrutiny grows over CEO
By Brie CarterKey points
- Nvidia (NASDAQ:NVDA) shares fell more than 3% on Tuesday, extending a 4% decline from the previous session.
- Reports of a US investigation into alleged links between a former associate of CEO Jensen Huang and restricted Nvidia chip shipments to China added to investor concerns.
- AMD and Broadcom shares gained 4% each, while Nvidia declined amid broader market weakness and concerns about inflation and interest rates.
Nvidia (NASDAQ:NVDA) shares fell 4.2% on Tuesday, extending their decline as investors assessed an independent board investigation into CEO Jensen Huang's relationship with a businesswoman suspected of links to Chinese intelligence.
The decline followed a 4.3% drop on Monday, when Nvidia fell despite gains across major US stock indexes, as reports raised questions about Huang's relationship with Alice Huang and potential national security implications.
The scrutiny also involves Singapore-based Megaspeed, where Alice Huang previously held an executive role, with Reuters reporting that US authorities have examined whether the company helped Chinese customers obtain restricted Nvidia processors, although no public finding has established an export-control violation.
Following the latest developments, Nvidia shares closed Tuesday at US$171.16, down 4.2% for the session, after reaching an intraday low of US$170.94.
Nvidia's board said its independent directors would oversee the investigation with outside legal counsel, adding that it had no reason to believe company secrets or national security information had been compromised.
Huang has said he will cooperate with the investigation.
Nvidia develops graphics processing units and computing platforms used in artificial intelligence, data centers, gaming and automotive applications, with its chips playing a central role in the global AI infrastructure market.
