Nvidia disclosed on Sunday that its board has launched an investigation to determine whether Chief Executive Officer Jensen Huang may be a subject of interest to foreign intelligence operations. The company said Huang would continue to carry out his duties as CEO during the review and that business operations would not be disrupted.

The disclosure came as Nvidia responded to a recent report describing Huang as having a close relationship with a woman who previously served as an executive at a Singapore cloud computing company. The report said the two were not related. In a memo to employees, Huang acknowledged that he had been unfaithful in his marriage and said he was willing to take responsibility for the harm caused by his personal choices and to accept public criticism.

With Nvidia positioned at the core of the artificial intelligence supply chain, the episode quickly spread from a personal issue to the capital markets. AI-related stocks have been under pressure in recent months over concerns about the sustainability of spending, financing structures and earnings volatility at some large technology companies, making Huang's personal reputation risk a greater focus for investors.

Some market participants said that if the board's investigation points to governance problems and leaves Huang's position uncertain, Nvidia's shares could face further pressure. Others noted that the situation exposes the company's heavy reliance on founder-style leadership, with succession arrangements remaining unclear should there be a change at the top.

Nvidia said there was currently no evidence that company secrets or national security matters had been compromised. An independent committee of the board will review all available information with the assistance of outside legal counsel. Huang has pledged to cooperate with the investigation, and the board said it still had confidence in the leadership team and would provide updates as the review progresses.

Earlier, Nvidia had downplayed its business dealings with the Singapore cloud company, saying it was no different from customers in other regions and that interactions between executives were routine. The latest disclosures, however, made those earlier statements appear insufficient and renewed scrutiny of Nvidia's sensitive position across Asia operations, chip exports and regulatory pressure.