Nvidia shares fell as much as 8 percent in early trading Monday before settling around 4 to 6 percent lower, erasing hundreds of billions in market value. The decline followed the company's announcement of an internal probe into whether Chief Executive Jensen Huang had been targeted by foreign intelligence.

Huang admitted in a note to employees that he had been unfaithful to his wife. "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," the message stated. He pledged full cooperation with the board's review and reaffirmed his commitment to protecting the company and U.S. national security.

The board said it had no reason to believe national security or company secrets were compromised but would examine all information with help from outside counsel. The investigation stems from reports that Huang maintained a close relationship with Alice Huang, an executive at Singapore-based data center firm Megaspeed and a customer of Nvidia. U.S. intelligence officials concluded she was recruited by China's Ministry of State Security to gather information on American AI technology.

The episode highlights ongoing risks from Chinese espionage efforts aimed at U.S. technology leaders. Nvidia remains central to the global AI supply chain, and any distraction at the top raises questions about leadership stability during a period of heightened U.S.-China tensions.

Analysts noted the stock's weakness extends a recent selloff driven by broader concerns over AI spending. Shares have erased all gains for the year and sit well below recent peaks. The board expressed continued confidence in Huang, while figures including Elon Musk and President Trump voiced support for his continued role.

China's Foreign Ministry dismissed the allegations as unsubstantiated. The probe could extend for weeks and may influence investor sentiment toward the $4.5 trillion company.