NEW YORK — Nvidia Corp. is navigating a turbulent chapter following Chief Executive Jensen Huang's admission of an extramarital affair involving a woman allegedly tied to Chinese intelligence. While Wall Street braces for short-term volatility, analysts remain deeply divided over whether the leadership crisis will derail the chipmaker’s long-term dominance. 

The Controversy and Board Investigation

The scandal erupted after internal disclosures revealed that Huang maintained a personal relationship with a former executive of Megaspeed, a Singapore-based data center firm and one of Nvidia's top corporate clients. U.S. intelligence memos allege the individual was targeted or recruited by China's Ministry of State Security (MSS). 

In a remorseful message addressed to employees on Sunday, Huang acknowledged the relationship, stating, "I was unfaithful to my wife... There is no excuse for what I did". Nvidia’s board of directors has swiftly initiated an independent inquiry to assess potential security and governance fallout. 

Market Repercussions and Governance Risks

Market watchers anticipate choppy trading when Wall Street opens. Because Nvidia’s meteoric rise has been heavily tied to Huang's centralized leadership style—where dozens of executives report directly to him—analysts warn that governance and key-man risks are now front and center.

"The risk of a leadership transition cannot be entirely dismissed depending on the board's findings," noted tech market analysts. Furthermore, questions loom over whether the controversy could complicate Nvidia's diplomatic and regulatory standing, particularly concerning U.S. export controls on high-end AI chips destined for Chinese markets, a portfolio Huang has personally managed with Washington policymakers.

Fundamentals and Supply Chain Resilience

Despite the executive turmoil, financial analysts emphasize that Nvidia’s underlying business mechanics remain robust. The company is slated to report its fiscal third-quarter earnings on November 17, with consensus estimates projecting revenue near $108.98 billion—a staggering 91% year-over-year jump. Financial commentators note that the corporate investigation centers on personal conduct and security optics rather than shifting orders, profit margins, or structural business decay.

The ripple effects extend internationally, notably in South Korea, where Nvidia ranks as the second-most popular foreign equity among retail investors, holding roughly $20 billion in local portfolios. However, local market experts suggest that memory suppliers such as Samsung Electronics and SK Hynix—crucial providers of High Bandwidth Memory (HBM) to Nvidia—will likely stay anchored to broader global artificial intelligence capital expenditure trends rather than executive controversies.

Ultimately, market experts point out that Nvidia's recent equity correction is part of a broader macroeconomic cooling trend regarding AI investment cycles, suggesting that the long-term structural appetite for accelerated computing will remain the primary determinant of the stock’s trajectory.

[ⓒ Global Economic Times. 무단전재-재배포 금지]