The shares of American technology giant Navia have dropped by about 8 percent in Monday’s trade after launching an internal investigation into claims that the company’s executive director, Jensen Huang, may have been the target of a foreign intelligence operation.
The investigation, reported Sunday, followed media reports that Huang had had a close relationship with a Chinese businessman, who allegedly conveyed information to Beijing, Reuters reports.
Huang told Navilia’s employees he had been unfaithful to his wife, but he didn’t give any more details about the relationship.
The case has questioned Huang’s future at the helm of the company, which is the world’s most valuable chip manufacturer and one of the key actors in the development of artificial intelligence.
According to LSEG data, Huang owns about 3.6 percent of Nvivia’s shares, being the company’s fifth largest shareholder. It also has considerable control over its functioning, as dozens of directors report directly to it.
The decline in Monday’s trade, following last week’s losses, could mean losses of around $350 billion in the company’s market value, compared to the latest closure of the stock exchange.
Analyst Chris Weston, from the mode company Pepperstone, said the market was negatively reflecting the situation, at a time when there is uncertainty about investments in data centres.
However, he does not believe Huang will leave Nvivia’s direction. According to him, if the market seriously considered the possibility of his resignation, the decline would be even greater.
The board of directorates of Nvivia has expressed confidence in Huang, while some analysts have estimated that the company does not have a natural offspring if he decides to leave.
New York Times reported last month that Huang had a relationship with Alice Huang, former leader of the Megaspeed Company, headquartered in Singapore. It was investigated by American authorities, who had concluded it was Chinese intelligence asset.
China’s Foreign Ministry has singled out spying allegations as groundless accusations and slander.
Meanwhile, the occasion has also had an impact on the planned Naviia activities in South Korea. Madison Huang, daughter of executive and executive director at the company, has cancelled the planned visit to Seoul, where she would attend a Nvivia conference.
Companies who were expected to meet him have indicated that activities were cancelled because of the inevitable internal circumstances in Nvilia.
In spite of that, the two-day Nvivia Al Day Seol conference, which is expected to take part in about 2,000 people to discuss artificial intelligence and technological infrastructure, will be held on schedule.
Popular figures of American business and politics have also reacted to recent developments. Investors Bill Ackman named Huang an extraordinary person, but he said that if the case goes beyond an extramarital relationship, then it’s a serious problem.
Tesla’s executive director, Elon Musk, also supported a comment describing Huagu’s action as reckless and potentially harmful to American interests, but also considered it irreplaceable for American leadership in artificial intelligence.
American President Donald Trump said he didn’t discuss the claims with Huang, but named him a respected person and expressed hope that everything would be okay.
Analysts warn that a protracted investigation could affect investment decisions and launching of Nvivia’s new products, with implications for the semi-disciplinary industry.
However, South Korean Deputy Minister of Science has declared that the government does not expect disruptions of supply contracted with graphic Nvivia processors.
Source Layer: Dukeagini
