Nvidia’s shares are sliding after the company’s board launched an investigation into reports that Chief Executive Jensen Huang had been a spying target after a romantic relationship with an executive suspected of working for Chinese intelligence.
The chip giant is on track to lose hundreds of billions of dollars in market value, with the stock down about 7%.
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Huang is one of the tech industry’s most powerful leaders. He has a close relationship with President Trump and has advocated against restrictions on the company’s ability to sell chips around the world, including China.
An Nvidia spokesperson said Huang is committed to staying on as CEO, but investors are questioning whether the probe could lead to his replacement. Another risk is that the incident could increase scrutiny of chip sales to China.
More broadly, stocks are advancing, with the Dow gaining more than 600 points after last week’s slide. Monday, Trump is set to meet the prime minister of Qatar, one of the countries mediating between Washington and Tehran, after saying over the weekend that it was “highly unlikely” he would launch extensive new strikes on Iran.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com