CNN: Jensen Huang dreamed up Nvidia at a Denny’s. The spy scandal threatens decades of his life’s work
Nvidia says the probe could affect the CEO’s future as the scandal has sent shares down more than 5% this week, analysts said.
- On Tuesday, Nvidia retained New York law firm Wachtell, Lipton, Rosen & Katz to investigate whether CEO Jensen Huang was targeted by a foreign intelligence effort involving a woman U.S. intelligence officials suspect spied for China.
- Jensen Huang admitted to the affair on Sunday, stating he is "committed to protecting Nvidia and supporting America's national security." Former Russian recruit Aliia Roza described the case as a "perfect professional honey trap operation" by Chinese intelligence.
- The scandal has sent Nvidia shares down over 5% this week, though analysts told CNN they do not foresee Huang being toppled. Portfolio manager Michael Monaghan said it would require "James Bond-level stuff" to trigger removal of the founder-CEO.
- China's Ministry of Foreign Affairs spokesperson Guo Jiakun dismissed the allegations on Monday as "purely groundless speculation" and an attempt to malign China. Federal lawmakers are calling for new restrictions on advanced chip exports that could dent Nvidia's business.
- Huang built his company on the motto "our company is 30 days from going out of business," embodying resilience that now faces its greatest test. With no clear succession plan for the $4 trillion company, the scandal threatens to taint his largely positive personal brand.
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Reformatorisch Dagblad
dagelijksestandaard.nlNvidia lost over 500 billion dollars in market value on Thursday at the opening of the New York stock exchanges. The world's largest seller of AI chips had managed to recover somewhat the day before from this week's price drop following the affair between CEO Jensen Huang and an alleged Chinese spy. However, the stock plummeted 13 percent after Huang's departure was announced.
Manager's infidelities and the AI chip crisis cause a two-billion-dollar loss of value since October 6th
Nvidia is taking a hit on the stock market now that CEO Jensen Huang is stepping down following news of several extramarital affairs. And this is not just a problem for speculators and major shareholders. For Nvidia has such a strong presence among investors that anyone with some cash in an ETF or pension fund could feel the impact.
Nvidia shares fall more than 10 percent in premarket after company fires CEO Jensen Huang
The affair with Nvidia CEO Jensen Huang raises an old question: Are certain companies and their top managers too big and too important to fail?
Nvidia's charismatic "rock star CEO" has, until very recently, been one of the company's strongest cards.
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