KATHMANDU: Shares of US chip company Nvidia fell about 7.5 per cent in regular trading on Wednesday. The decline came after reports of another alleged affair involving CEO Jensen Huang.
The company’s shares had previously closed with gains on Wall Street. According to a report in the New York Times, Huang also had an affair with an Nvidia employee. He was previously accused of having an affair with a woman accused of spying for China.
According to reports in the Wall Street Journal and Financial Times, the company’s board is now considering whether Huang will continue as CEO. Nvidia hired a major U.S. law firm on Tuesday to investigate the matter. The company’s board had previously endorsed Huang.
According to the board, there is no reason to believe that confidential information or a national security agreement has been entered into on this matter. As of Wednesday evening, the board had not issued any new statements. Attempts to contact several company representatives and board members were also not answered.
Nvidia’s chips are used in technologies such as artificial intelligence (AI) systems, data centers, video games, and driverless vehicles. These chips play an important role in America’s efforts to stay ahead of China in the field of AI.
Citing national security, the US has banned the export of Nvidia’s most advanced chips to China from 2022. However, some restrictions have been relaxed during President Trump’s tenure. -Agency
