Nvidia shares are set for a sell-off when Wall Street opens on Monday after a spying scandal involving boss Jensen Huang threatened to derail the chipmaker’s recovery from last week’s brutal technology sell-off.

Shares in the AI giant were trading at €157.84 (£131.67) on Germany’s Tradegate exchange on Monday morning, down 5.8 per cent, as investors reacted to Nvidia’s announcement of an independent investigation into reports that Huang had been targeted by Chinese intelligence.

The decline follows a tumultuous week for technology stocks, which saw $2.5 trillion wiped from the Nasdaq on Thursday amid mounting fears over the sustainability of the AI investment boom.

Nvidia staged a partial recovery on Friday, with shares jumping more than seven per cent in early trading, but remained around 22 per cent below their October peak.

The latest controversy threatens to reverse those gains just nine days before the world’s most valuable chipmaker reports its quarterly earnings.

Nvidia boss faces spy investigation

Huang admitted over the weekend that he had been unfaithful to his wife, following reports that he had been involved with Alice Huang, a former executive at Singapore-based data centre company Megaspeed International.

US authorities reportedly identified Alice Huang, who is unrelated to the Nvidia boss, as a Chinese intelligence asset. The allegations have not been established as findings against Jensen Huang.

“I owe my family and all of you an apology,” Huang told employees. “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”

Nvidia’s board has appointed independent directors and outside lawyers to investigate the reports, although it said it had “no reason to believe” national security or confidential company information had been compromised.

The company also reiterated its confidence in Huang, who has become the public face of the AI boom and played a central role in Nvidia’s rise.

China has denied involvement, with state-backed newspaper Global Times accusing American media outlets of promoting an unfounded espionage narrative.

Josh Gilbert, an analyst at eToro, said that a cloud over Huang was also “a cloud over the stock”.

“Any doubt over his position is going to matter to shareholders,” he said, warning that investors would have to account for further uncertainty until the investigation concluded.

US President Donald Trump offered his support on Sunday, describing Huang as a “fine person”, while billionaire investor Bill Ackman said he hoped the controversy was “a simple affair, not a risk to our national security”.

AI stocks attempt recovery

Nvidia’s decline contrasts with a broader recovery across Asian tech markets on Monday.

Shares in Taiwanese chipmaking giant TSMC jumped 6.5 per cent, while Samsung Electronics and SK Hynix rose 2.9 per cent and 4.7 per cent respectively.

Last week’s sell-off followed sweeping Democratic victories in the US midterm elections, which intensified concerns that growing political opposition to energy-intensive data centres could slow America’s AI infrastructure expansion.

The Nasdaq plunged more than 5.5 per cent on Thursday, while chipmakers AMD and Micron suffered double-digit losses.

Naeem Aslam, chief investment officer at Zaye Capital Markets, warned that Nvidia’s investigation introduced further uncertainty for semiconductor stocks and the wider AI industry, with European tech companies particularly exposed to renewed selling pressure on Wall Street.

The scandal has also renewed scrutiny of Nvidia’s relationship with China, where US export controls have sought to restrict access to advanced American chips.

Huang has previously criticised those restrictions, arguing they have encouraged Chinese companies to develop rival technology.