Nvidia shares fell for a second straight day on Tuesday as investors weighed the fallout from Chief Executive Jensen Huang’s admission of an extramarital affair and a board investigation. The stock traded at $167.50 at about 2:50 p.m. Eastern time, down $11.17, or 6.3%, from Monday’s close of $178.67. It touched $166.24 earlier in the session.
The shares closed down 4.3% on Monday, the day after Huang told employees in an email that he had been “unfaithful” to his wife and had “fallen short” of his responsibilities as CEO, CNBC reported. Nvidia’s board has opened an independent investigation after reports that Huang was the target of a foreign intelligence effort. U.S. President Donald Trump said Monday: “We’ll look into it. I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape.”
A shareholder class-action lawsuit has been filed against Nvidia and Huang in federal court in San Jose, California, CNBC reported. The suit, filed by the Rosen Law Firm, alleges the company and Huang made false or misleading statements.
Tuesday’s price was about 30% below the stock’s Oct. 6 close of $239.24. Rival chipmakers Advanced Micro Devices and Broadcom, which jumped Monday, traded higher earlier on Tuesday.
