It’s a story that could be the basis for a Hollywood movie. The CEO of one of the world’s largest companies has admitted to having an affair with Alice Huang, who runs the company Megaspeed. She and her company have done business with Nvidia, while Huang is suspected of being a Chinese spy who has acted on behalf of China.
Nvidia’s board has appointed an investigation.
“It’s sad to have to talk about people’s private lives in a business context, but the company has confirmed that he has been unfaithful to his family. What has not been confirmed is that she is a spy,” Kristofer Barrett tells TT.
Following Nvidia
As a fund manager at asset manager Carmignac, Kristofer Barrett has followed Huang and Nvidia from the start and has had the opportunity to meet Huang on a few occasions.
“It’s sad for Huang’s family, it’s sad for the company, but I don’t think it will be that serious. There are just rumors about this woman’s relationship and motives,” he says.
However, the market reaction has been immediate. In pre-market trading on Wall Street, Nvidia shares fell by around 5 percent, meaning that more than 2,000 billion kronor could now be wiped off its market value. As the world’s second-largest company after Apple, Nvidia also carries significant weight in various index and pension funds.
Shaken up
The infidelity scandal comes as the entire AI sector has been shaken up in recent weeks by sharp price drops and questions about whether company valuations are too optimistic. Barrett believes that the timing of the revelations about Huang may be linked to political undertones, but does not want to elaborate.
Nvidia has also announced that Huang remains under investigation, and Barrett believes he will not be allowed to leave.
“As long as he is not charged with doing anything illegal, I believe he has the full support of the company and the board. He is important to the company from a business perspective, so they will do everything to keep him.”
What do you think?