Nvidia’s board announced on Monday that it is investigating whether CEO Jensen Huang was the focus of a foreign espionage operation, following his admission of an extramarital affair.
The probe comes after The New York Times reported that U.S. intelligence concluded a Chinese executive linked to Singapore‑based data‑centre firm Megaspeed had been passing information to Beijing. The executive, identified as Alice Huang (also known as Huang Le), cultivated a close relationship with the Nvidia chief, though she is not related to him.
Jensen Huang, 63, is a central figure in the global AI boom and has been described as an informal adviser to former President Donald Trump.
Analyst Dan Ives of Yorkville Ives warned that the scandal could trigger multiple congressional hearings and create a “overhang on the stock for a myriad of reasons.” He added that the situation adds risk because Huang is “so important to the Nvidia story and strategy globally,” and could intensify scrutiny over Nvidia’s chip sales to China.
Investors are also watching upcoming U.S. inflation data, which will influence the Federal Reserve’s decision on interest‑rate hikes at its December meeting. Markets currently price an 80 percent chance of a rate increase.
Tech stocks rallied on Monday, attempting to recover from losses tied to AI‑regulation concerns. Traders remained alert to the Nvidia investigation, especially given recent claims of a Chinese spy connection.
The broader AI sector has faced pressure since the U.S. midterm elections, where Democrats gained control of both chambers, signaling potential pushback on large data‑centre expansions and related job growth.
Asian markets responded positively, with Japan’s Nikkei gaining over three percent, driven by gains in Kioxia, Tokyo Electron and Advantest. South Korea’s Kospi rose sharply as SK hynix and Samsung each climbed about three percent. Taiwan’s TSMC surged nearly six percent, lifting the Taiex by five percent.
Regional gains were also seen in Hong Kong and Shanghai, while Australian and New Zealand indexes slipped modestly.
Sally Auld of National Australia Bank said investors will be looking to see whether recent market lifts reflect short‑covering, bargain hunting, or a more durable recovery.
Source: https://gulfnews.com/world/americas/eyes-on-nvidia-jensen-huang-amid-spying-probe-1.500740696
