NVIDIA (NVDA.US) CEO Jensen Huang admitted to having an extramarital affair with a Chinese woman, arousing market concerns over his future at the company and questions about the chipmaker's development should the 63-year-old co-founder be forced to step down. Huang has led the chipmaker into becoming one of the world's most valuable companies by market cap.

Huang sent a message to employees last Sunday (8th) admitting to the relationship and said the board is investigating whether he had been targeted by foreign intelligence agencies. Following the disclosure, NVIDIA shares plunged more than 5% on Monday despite a sharp broader market rebound. The board said it has confidence in Huang and stated there is no reason to believe national security or NVIDIA secrets have been compromised.

The New York Times first reported that intelligence circulated in internal memoranda within the Trump administration this spring alleged the Chinese businesswoman was an agent of China's Ministry of State Security. China said the allegations were smears.

NVIDIA said Huang will continue to lead the company during the investigation. However, pressure on the chipmaker that drove the first four years of the generative AI boom is rapidly intensifying. Politicians from both parties have demanded briefings, while Democrats expected to control both chambers of Congress have called for investigations and new legislation to prevent advanced AI chips from aiding China's military development.

Huang wields enormous influence at NVIDIA and is the company's only prominent public figure, with no clear deputy currently identified. He is also among the strongest advocates for AI development in the US, playing a critical role in broader infrastructure financing and maintaining close ties with US President Donald Trump, placing NVIDIA at the center of discussions on AI policy, security and regulation.

Melius Research analysts said in a report on Monday that NVIDIA's issue is the lack of a clear successor, and they had expected Jensen to remain for at least another decade.

Bernstein analyst Stacy Rasgon said in an interview with CNBC that Jensen Huang is NVIDIA, and NVIDIA is Jensen Huang. He added that Huang essentially manages the company through a top-down approach and controls all major decisions.

NVIDIA did not immediately respond to requests for comment.
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