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Nvidia’s crisis has corporate governance experts reaching for the popcorn
Nvidia’s stock sank 5.47% on Tuesday, following a 4% drop on Monday, a loss of about 9.5% in two days, even though there wasn’t much news out of the company.
AI Summary
Nvidia’s shares fell 5.47% on Tuesday, adding to a 4% decline the day before for a total loss of about 9.5% in two days despite little company news. CEO Jensen Huang, who disclosed an extramarital affair with former Megaspeed executive Alice Huang—suspected by U.S. intelligence of spying for China—has been trying to maintain normal operations. Nvidia’s board responded by retaining law firm Wachtell, Lipton, Rosen & Katz to investigate the matter. Corporate‑governance scholars Ann Lipton and Todd Henderson note the lack of precedent for a CEO entangled in a suspected honeypot and are watching the investigation’s scope.
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