Nvidia Futures Drop 4.1% as Board Opens Probe Into Spy Reports

CME Globex Nvidia futures were recently at $179.77. Nasdaq futures, by contrast, were up 1.1%. Nvidia shares have been roughly flat so far this year and are about 22% below their October peak.

The Wall Street Journal previously reported that U.S. officials concluded last year that Alice Huang, then a senior executive at Megaspeed International, had shared information with the Chinese government while working with Nvidia on data centers in Asia. Alice Huang, also known as Huang Le, is not related to the Nvidia CEO.

On Sunday, Jensen Huang apologized to staff for being unfaithful to his wife. The board said an independent-director committee, assisted by outside counsel, would lead the inquiry and examine all available information. It also expressed confidence in Huang’s leadership.

Yorkville Ives analysts said Huang was likely to remain CEO in the near term, but his position could depend on the board’s findings. “This will add risk to the stock, as he is so important to the Nvidia story and strategy globally,” Dan Ives and other analysts wrote. They also said the matter could prompt congressional inquiries and intensify U.S. scrutiny of chip sales to China. Semiconductor stocks sold off last week amid growing anxiety about the AI trade, after Democrats’ midterm election victory added to those concerns.