Nvidia drops 5% as board probes CEO Jensen Huang

Nvidia fell about 5% premarket after its board opened an independent probe into CEO Jensen Huang.

According to CNBC, citing reporting by The New York Times and The Financial Times and a statement from Nvidia, the board launched the investigation following reports that Huang was the target of a "foreign intelligence effort." Nvidia said Huang "fully supports the review and has committed to cooperating with it."

Nvidia was last trading down 5.2% premarket and was lower by over 6% in Frankfurt. Nasdaq futures dipped in and out of the red, while Dow and S&P futures held just above flat. Intel, Marvell, Qualcomm and Arm were down over 1% premarket; Broadcom and AMD were higher. TSMC, Samsung and SK Hynix traded higher in Asia.

Analyst Dan Ives called it a "black eye moment" for Huang, and Bernstein said the "overhang will be around for a while."

Watch next: Nvidia reports third-quarter earnings on Nov. 17.

The facts we checked

According to CNBC, citing reporting by The New York Times and The Financial Times and a statement from Nvidia. Claims about the woman are allegations and must be attributed to those reports.

1. Nvidia shares were down 5% in premarket trading Monday.Figure · CNBC
2. Nvidia was last trading down 5.2% in premarket trading.Figure · CNBC
3. Nvidia shares were lower by over 6% in Frankfurt.Figure · CNBC Morning Squawk
4. Nvidia said its board has launched an independent investigation following reports that Huang was the target of a "foreign intelligence effort."Fact · CNBC (citing Nvidia statement)
5. Nvidia said Huang "fully supports the review and has committed to cooperating with it."Quote · CNBC (citing Nvidia statement)
6. The New York Times and The Financial Times reported that U.S. intelligence agencies say Alice Huang, an executive at cloud company MegaSpeed, has been passing information to Beijing.Alleged · CNBC
7. China's Foreign Ministry said the "so-called Chinese spy narrative is completely unsubstantiated."Quote · CNBC Morning Squawk
8. Nasdaq futures were under pressure, dipping in and out of the red in the morning, while Dow and S&P futures held just above the flatline.Reported · CNBC Morning Squawk
9. Intel, Marvell, Qualcomm and Arm were all down over 1% in premarket trading; Broadcom and AMD were higher.Reported · CNBC
10. TSMC, Samsung and SK Hynix all traded higher in Asia.Reported · CNBC Morning Squawk
11. Analyst Dan Ives of Yorkville Ives & Co. called it a "black eye moment" for Huang.Quote · CNBC
12. Bernstein said the "overhang will be around for a while."Quote · CNBC Morning Squawk
13. Nvidia reports third-quarter earnings on Nov. 17.Fact · CNBC

Sources

• CNBCNvidia stock falls 5% as scrutiny turns to Jensen Huang’s relationship with alleged Chinese spy
• CNBCNasdaq defies Nvidia impact as Huang faces espionage affair probe