Shares of Nvidia, one of the world’s largest AI chip makers, tumbled 5% at the opening bell Monday after the company opened an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort, according to a report by the Associated Press.
Nvidia’s stock, which had reached an all-time high last month, slid to $176.33 on the Nasdaq, a 5.52% drop, as of 12:40 p.m. Central Standard Time.
Huang acknowledged that he had been intimate with a business executive who U.S. intelligence said was gathering information for the Chinese government, which is involved in a fierce race with the U.S. to develop AI technology.
Nvidia makes computer chips that power and run AI models and many of the massive AI data centers that accommodate the rapidly evolving technology.
Due to the cutting-edge nature of its semi-conductor technology, Nvidia faces U.S. export restrictions aimed at limiting China’s access to it.
China’s Foreign Ministry called the spying allegations a smear campaign against Beijing.
