Nvidia chief executive Jensen Huang lost $7.4 billion in 30 minutes as Nvidia shares slid amid controversy on 10 November. The sharp fall in the chipmaker's stock wiped billions off Huang's fortune in a single trading session.
Nvidia and Huang face a proposed shareholder lawsuit over allegations concerning disclosures related to national security. The allegations have not been established as facts, and the lawsuit is at the proposal stage.
Board probe into allegations
Nvidia's board has formed a committee of independent directors to investigate allegations that Huang may have been targeted in a foreign espionage operation, after he disclosed an affair. Huang has apologised to employees and says he is cooperating fully with the probe.
The board probe adds to the pressure on the company at a time when its shares are already under strain. Nvidia shares fell about 4.3 per cent as the controversy deepened, according to market reports.
The allegations around Huang remain unproven, and the board committee's task is to examine them independently. Until the probe concludes, the details of what happened remain a matter of allegation, not established fact.
AI competition in focus
Anthropic's planned IPO and growing competition in artificial intelligence were also in focus the same day. The AI sector has seen intense rivalry among chipmakers and model builders, and any uncertainty around Nvidia, the dominant AI chip supplier, draws close attention from investors.
Nvidia's position at the centre of the AI boom means its share price moves ripple across the wider technology sector. A slide in Nvidia shares can weigh on other AI-linked stocks, and the latest fall came as investors weighed both the lawsuit and the board probe.
For shareholders, the coming days will show whether the stock steadies or the controversy drags on. The lawsuit, the board probe and the wider AI competition all remain live issues, and the market will be watching how Nvidia responds to each of them.
