Nvidia Corp. (NASDAQ:NVDA) shares fell 5.22% in premarket trading Monday after the board announced an independent review following CEO Jensen Huang’s disclosure of a romantic relationship with a woman suspected of having ties to Chinese intelligence.
Speaking to reporters on Sunday, President Donald Trump praised Huang as an “honorable” person and credited his “amazing” contributions to the U.S., while saying he had not discussed the scandal with Huang.
“I just know he’s a fine person, but you never know what is going on,” Trump said. “I hope everything’s fine.” The President said he would be willing to have Huang accompany him on his upcoming Asia trip.
When asked if Huang should continue as the CEO of Nvidia, Trump said, “I think so…oh yeah, sure.”
Rubio Declines to Comment on Huang
Secretary of State Marco Rubio oversaw a classified memo warning senior Trump administration officials about Huang’s alleged close relationship with a suspected Chinese spy, reported the New York Times. The memo was circulated ahead of Trump’s May trip to China, following an earlier intelligence briefing to Trump about the woman.
Addressing the press ahead of leaving for the G7 meeting in Paris, Rubio said, “I just can’t comment because of the nature of it and I also can’t comment on an internal corporate matter that’s going on with Nvidia inside.”
Analysts Warn of Leadership Fallout
Yorkville Ives partner Dan Ives warned that the controversy involving Jensen Huang and Chinese businesswoman Alice Huang, also known as Huang Le, could trigger congressional inquiries and create an overhang for the chipmaker, describing it as a “black eye moment” for the CEO.
Investor Gary Black said he doubts Huang can retain his position as the company’s CEO, arguing that scrutiny of his conduct and judgment could prompt the board to remove him, despite no evidence of criminal or civil wrongdoing.
Price Action: Over the past month, Nvidia stock has declined 21.99%, as per Benzinga Pro. On Friday, the stock closed 2.78% higher at $186.64, reversing the previous session’s tech sell-off.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Recent Comments