Nvidia stock cratered more than 8% at the opening bell on the Nasdaq, dumping shares to an intraday low of $171.80. Panic hit the order books immediately. Traders dumped blocks and piled into short positions across Wall Street within seconds of trade commencing, reacting to the chipmaker launching a formal probe into Chief Executive Officer Jensen Huang over an affair with an executive suspected of foreign intelligence ties.
The stock clawed back some ground as trading progressed. Buyers stepped into the order flow to lift quotes to $177.85, paring the opening crash to a 4% decline. Even with that partial rebound, the early wipeout erased billions of dollars in valuation from the world's premier artificial intelligence hardware designer.
The internal investigation began hours after Huang sent a direct memo to staff on Sunday acknowledging an extramarital relationship with business executive Alice Huang. US authorities suspect Alice Huang was gathering intelligence on behalf of China.
"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Huang wrote in his email to company employees.
The inquiry strikes directly at Nvidia's executive suite. Huang co-founded the semiconductor powerhouse more than 30 years ago, transforming it from a niche graphics card maker into the most valuable corporation on earth. Institutional desks are now pricing in unprecedented leadership risk as the board's review gets underway.