Tech giant’s stock plunges – following an extramarital affair
The CEO of the tech giant has confirmed an extramarital affair.
Nvidia shares are falling sharply this Monday morning.
Experts tell CNBC that there is now a risk that Jensen Huang could be forced out of his role as CEO.
In late October, it was revealed that Nvidia CEO Jensen Huang had an affair with a woman named Alice Huang, who is suspected of being a Chinese spy.
On Sunday, Nvidia announced that it has launched an independent investigation. In an email to employees, Jensen Huang admitted to his indiscretion and apologized to his family and staff.
“A major blow to Jensen’s reputation”
On Monday, shares in chipmaker Nvidia fell sharply during pre-market trading on Wall Street, CNBC reports. The stock is down five percent following the reports regarding the suspected spy.
“This is a major blow to Jensen’s reputation and will, at the very least, lead to several congressional investigations. It will also create uncertainty surrounding the stock for a number of reasons,” Dan Ives, a financial analyst and head at Yorkville Ives & Co, told CNBC.
Expert: Could be forced out
The analyst told the outlet that there is now a risk that Jensen Huang could be forced out as CEO of Nvidia—one of the world’s most highly valued companies.
“It would create further uncertainty regarding Nvidia’s stock, as Huang plays a crucial role in the company’s success and global strategy.” It would also lead to stricter scrutiny of Nvidia’s sales of chips to China—an issue that remains politically contentious in Washington—Dan Ives tells CNBC.
Inga kommentarer:
Skicka en kommentar