Nvidia shares came under pressure after its board announced a review of Jensen Huang’s relationship with a woman whom an intelligence community allegedly identified as a Chinese spy.
At 10.21 local time, Nvidia shares stood at 178.76 dollars, down 4.22 percent. The decline followed scrutiny of the chief executive’s personal conduct and raised questions about the company’s reliance on him.
Dependence on a key leader creates risk
Analysts said Nvidia’s success and continuity depend heavily on Jensen Huang. This dependence has generated investor concern about the risks of relying on one central figure.
In an internal memo to employees, Huang acknowledged an extramarital relationship, apologized, and promised full cooperation with the independent review. Nvidia’s board will examine the relationship and the allegations surrounding the woman.
Yorkville Ives analyst Dan Ives described Huang’s importance to Nvidia’s success in the artificial intelligence industry. “Jensen is the core DNA of Nvidia,” he said.
Two data center tenants
PT Megaspeed International Indonesia and PT Indosat Tbk. were named as tenants of two data centers that PT Nexai Digital Infrastruktur Tbk. plans to build.
The projects disclosed by PT Nexai Digital Infrastruktur Tbk. are located in Cikarang and Batang. Their capacities are 36 megawatts in Cikarang and 60 megawatts in Batang.
Who is affected
Nvidia shareholders bore the immediate impact of the company’s leadership scrutiny, with the stock declining 4.22 percent to 178.76 dollars at 10.21 local time.
Other semiconductor and data storage stocks rose by 6 percent, 2 percent, almost 2 percent, 3 percent, 1 percent, and more than 1 percent. SK Hynix shares were relatively stable.
What is still unclear
The timing and outcome of Nvidia’s independent board review remain unknown. Investors have also not received clarity on whether the allegations that the woman was a Chinese spy can be proved.
PT Indosat Tbk. has not confirmed its business relationship with Megaspeed. CNBC Indonesia requested confirmation from PT Indosat Tbk. on the matter.
Closing
Nvidia faces scrutiny over its chief executive and the concentration of risk surrounding him. Meanwhile, PT Nexai Digital Infrastruktur Tbk. is preparing two data center projects in Cikarang and Batang, with PT Megaspeed International Indonesia and PT Indosat Tbk. identified as tenants.