Nvidia loses US$192 billion in market value after probe into reports involving CEO Jensen Huang

Nvidia lost about US$192 billion in market value on Monday, closing 4.27% lower at US$178.67 in New York even as the Philadelphia Semiconductor Index jumped 6.85%. The estimate, based on roughly 24.1 billion shares outstanding, leaves the company valued at about US$4.3 trillion.

The sell-off followed the board's Sunday announcement of an independent investigation into reports that chief executive Jensen Huang had been the target of a foreign intelligence effort, as IBTimes reported earlier.

The rest of the sector went the other way. AMD rose 13.26% and Broadcom 8.78%, and the Nasdaq Composite gained 2.74% in a broad tech rebound.

A committee of independent directors, assisted by outside counsel, will run the inquiry. The board said it had no reason to believe national security or Nvidia's secrets were compromised and that it has confidence in Huang, who Nvidia said would continue as CEO. In a message to staff, Huang said he had been unfaithful to his wife, apologized, and pledged to cooperate fully with the review.

Reuters said it could not independently verify the claims in the original New York Times report. China's foreign ministry rejected them on Monday, with spokesperson Guo Jiakun telling a Beijing briefing they were a "groundless accusation, slander, and a smear."

President Donald Trump told a White House briefing that the FBI was looking into the matter "in terms of something else," without saying what the bureau was examining. He did not say whether Huang himself was under investigation. Trump said Huang told him he had been unaware of any espionage.

The Republican chairs of three House committees have asked Huang for a closed-door briefing on Nov. 18 and to confirm his availability by Nov. 11. The request is not a subpoena. Nvidia reports third-quarter results the day before, on Nov. 17.