New Delhi, Nov 11: NVIDIA has appointed an independent investigator to examine whether its chief executive Jensen Huang was targeted by a Chinese intelligence operation, as the chipmaker faces sustained pressure on its stock, which has fallen 22 per cent over the past month. The company’s independent directors have named Joon H. Kim, a former acting US Attorney for the Southern District of New York, to lead the inquiry.
Kim’s law firm, Wachtell, Lipton, Rosen & Katz, will assist him in the investigation, according to a statement issued by NVIDIA’s independent directors. The probe will examine the circumstances surrounding the alleged intelligence effort and whether it involved any compromise of the company’s information or US national security interests.
The company’s board has described US national and economic security as paramount to NVIDIA and its shareholders. It has also said the company would review all available information and provide further updates when appropriate.
NVIDIA has stated that it has no reason to believe that US national security or its corporate secrets have been compromised, while maintaining that it would examine the matter.
Huang has supported the investigation and told employees in an email that he would cooperate fully. He also reiterated his commitment to protecting the company and US national security.
“I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security,” Huang wrote. He also accepted responsibility for his actions and the hurt they caused, adding that he accepted the criticism directed at him.
Huang requested privacy for his family, stating that they bore no responsibility for his actions.
Meanwhile, NVIDIA shares continued to face selling pressure. The stock closed at $168.80 on Tuesday in US trading, down $9.8744, or 5.53 per cent, from the previous close of $178.67. The company’s market capitalisation stood at approximately $4.07 trillion.
The decline extended beyond the latest trading session. NVIDIA shares fell 14 per cent over the preceding week and 22 per cent over 30 days. The stock also recorded declines of 18 per cent over three months and 17 per cent over six months.
The fall in its valuation has pushed NVIDIA below Microsoft in the global market-capitalisation rankings, allowing the software company to reclaim its position as the world’s second-most valuable company.
NVIDIA’s quarterly results, scheduled for November 17, will offer another indication of demand for artificial intelligence chips and the company’s business outlook.
