Nvidia shares were down around 5% in premarket trading Monday after the tech giant was rocked by an investigation into CEO Jensen Huang's relationship with a businesswoman who intelligence agencies say is a Chinese spy.
U.S. intelligence agencies said Alice Huang, an executive at cloud company Megaspeed, has been passing information to Beijing, according to reports in The New York Times and The Financial Times.
Nvidia said its board has launched an independent investigation following the reports that Huang was the target of a "foreign intelligence effort."
Huang "fully supports the review and has committed to cooperating with it," the company said in a Sunday statement .
The co-founder and CEO told staff in an email that he had "fallen short" of his responsibility to serve his colleagues, the board, partners and shareholders around the world.
"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 said in the email.
China's Foreign Ministry spokesperson Guo Jiakun said on Monday the "so-called Chinese spy narrative" was unsubstantiated, Reuters reported.
Nvidia was last trading down 4.8% in premarket trading.
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