Stock markets in the U.S. and Canada were on a roller-coaster ride after the resignation of Nvidia chief executive officer Jensen Huang following reports of two extramarital affairs, one with an alleged Chinese spy.
Stock prices for Nvidia, the computer chip company at the centre of the AI boom, plummeted 14 per cent early on Thursday, but have since recovered slightly to a five per cent loss.
The company’s stock has been on a downward trajectory, down 27 per cent through Wednesday since the company’s board announced it was investigating Huang’s relationship with a Chinese businesswoman Alice Huang (no relation) who is an alleged spy for Beijing.
The New York Times reported last month that U.S. intelligence agencies discovered the affair and determined the Alice Huang was sending information to the Chinese government. China has denied the allegations.
Nvidia has said it has no reason to believe that its secrets, or U.S. national security, were compromised.
On Wednesday, media reports indicated Huang had another affair with a Nvidia employee who reported to him.
But following Huang’s resignation announcement, the markets seem to have rallied as of noon on Thursday. The Nasdaq 100 rose 0.1 per cent, and while the Nasdaq composite suffered an earlier drop of 1.6 per cent, it quickly erased those losses.
The S & P 500 also dropped nearly one per cent early in the day, but has regained its value since.
The TSX composite is down slightly, by 0.44 per cent.
Colette Kress, Nvidia’s chief financial officer, has been named interim CEO as the chipmaker looks to replace Huang, the co-founder and long-time face of the company.
With files from Bloomberg and The Associated Press
