Nvidia's shares experienced a significant decline on Monday, shedding more than $200bn in value. The fall followed the launch of an independent investigation by the chipmaker's board into reports concerning chief executive Jensen Huang.
Shares in the AI giant fell by as much as 8.04 per cent to $171.64 in early trading, ultimately closing down 4.27 per cent. The investigation centres on reports that Huang had a relationship with Alice Huang, a former executive at Megaspeed, whom US intelligence officials reportedly identified as a Chinese intelligence asset.
Jensen Huang admitted to an extramarital affair in an email to employees. The board stated it had "no reason to believe" company secrets or national security were compromised and reiterated its confidence in Huang. However, the investigation has raised concerns about Nvidia's reliance on its founder.
Huang has been summoned to appear before the US Congress for a confidential briefing on the company's security protocols against foreign espionage. Analysts have noted that Huang is considered irreplaceable within the company's current management structure.
The scandal has also brought renewed scrutiny to Nvidia's relationship with China, a market where Washington has imposed restrictions on advanced AI chip exports. China has rejected the espionage allegations as baseless.