Nvidia traded around US$180.30 in out-of-hours markets on 9 November, about 3.4 per cent below its Friday Nasdaq close of US$186.64, after the company announced an investigation into reports concerning chief executive Jensen Huang, CNA reported. Nvidia announced the inquiry on 8 November to examine whether Huang had been targeted by a foreign intelligence effort.
Key points
- Hyperliquid futures and Blue Ocean share trading put Nvidia around US$180.30 on 9 November, down about 3.4 per cent from Friday’s Nasdaq close.
- Independent directors and outside counsel will oversee the investigation, Nvidia says.
- A company spokesperson says Huang is committed to remaining CEO without interruption.
Nvidia trades around US$180.30
The US$180.30 price came from two venues operating outside the regular Nasdaq session. Hyperliquid showed perpetual futures prices, while Blue Ocean carried out-of-hours share trading. The comparison was with Nvidia’s Nasdaq closing price on Friday, 6 November.
Chris Weston, head of research at Melbourne brokerage Pepperstone, said the fall reflected an unwelcome development for the stock while investors were already considering questions about data-centre construction. Weston did not think Huang would be replaced. He said a market that expected the chief executive to leave would have produced a much sharper decline.
The price move followed the company’s announcement on 8 November. Huang told employees that he had been unfaithful to his wife but did not identify the other person in the relationship. The investigation concerns reports about an intelligence effort directed at him, rather than a finding by Nvidia that such an effort succeeded.
Independent Nvidia directors oversee Huang inquiry
Nvidia said in a press release that a committee of independent directors and outside counsel would oversee the investigation, CNN reported. A Nvidia spokesperson told CNN that Huang was committed to continuing as CEO without interruption. The company’s stated plan therefore keeps him in the role while the committee conducts its work.
AI Affairs reported the board’s decision to open an independent inquiry before the out-of-hours price move. The committee arrangement places oversight with directors outside management and brings in external lawyers. Huang said he supported the investigation and would cooperate fully, Tech Insider reported.
Dan Ives, a partner and senior managing director at merchant bank Yorkville & Ives Co., said in a note that the news would put further pressure on Nvidia’s share price as investors considered whether Huang would remain chief executive, CNN reported. Huang co-founded Nvidia in 1993, and its market capitalisation had grown to more than $4 trillion.
Megaspeed buys Nvidia chips
The reported relationship drawing scrutiny involves Alice Huang, an executive at Singapore-based Megaspeed, which buys Nvidia chips. She is no relation to Jensen Huang. Nvidia previously said his meetings with customer executives were part of his work. In earlier coverage of his response, AI Affairs reported that Huang described the Megaspeed dealings as normal.
The investigation has also affected a company event in South Korea. Madison Huang, the chief executive’s daughter and a Nvidia executive, cancelled a planned visit to Seoul for an Nvidia conference set to begin on 9 November, CNA reported.
