Nvidia shares slide about 5% before the bell as its board investigates spy reports around Jensen Huang

Nvidia shares fell close to 5% in premarket trading on Monday, November 9, after the company's board opened an independent investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort. @KobeissiLetter flagged the drop on X at 09:02 UTC as premarket trading opened, and CNBC reported the stock was last down 4.8% before the bell.

In its statement, the Nvidia board said a committee of independent directors, assisted by outside independent counsel, will oversee the inquiry. The board said it has "no reason to believe that either national security or NVIDIA secrets were compromised," and that Huang fully supports the review and has committed to cooperating with it.

Huang told staff in an email that he had been unfaithful to his wife, CNBC reported, quoting him: "There is no excuse for what I did. I am deeply sorry." The reports behind the probe say US intelligence agencies believe a businesswoman close to Huang passed information to Beijing.

China rejected the claims on Monday. Foreign ministry spokesman Guo Jiakun called "the narrative of a so-called Chinese spy" "entirely baseless vilification and smearing," The Guardian reported. The Guardian's live coverage said Nvidia was still expected to open about 5% lower when Wall Street opens at 14:30 UTC. Nvidia reports third-quarter earnings on November 17, according to CNBC.

Nvidia's board statement confirms the investigation, and CNBC and The Guardian report the premarket slide. Nvidia's board says it has no reason to believe national security or company secrets were compromised, and China denies the spy claims.