Reactions to Nvidia's probe into CEO Jensen Huang

Industry Reactions to Nvidia’s Probe into CEO Jensen Huang’s Alleged Intelligence Ties

Key Industry Figures Respond to Nvidia Investigation

Nov 9 (Reuters) - Nvidia's board is probing whether CEO Jensen Huang had been the target of a foreign intelligence effort, after a media report alleged he had a close relationship with a Chinese businesswoman who passed information to Beijing.

Here's what people are saying:

Political Leaders

Donald Trump, US President

"I have not spoken to him about it. I just know he's a fine person, but you never know what is going on. I hope everything's fine ... I think he's an honourable guy."

Financial Industry Leaders

Bill Ackman, Pershing Square CEO

"I am not suggesting he gets a free pass. If indeed this is more than an affair, then it is obviously a real problem. I like the guy. He has done a lot of good for the world and I hope the damage here is minimal. That is, I am hoping for a simple affair, not a risk to our national security."

Mohamed A. El-Erian, Former PIMCO CEO

"While Nvidia has sought to reassure us all, there are several layers here, beginning with the unfortunate timing. For example: The company is systemically important for tech, markets and the economy; Investors tend to struggle to price in key-person and governance issues; and there are fluid national security and geopolitical dynamics."

Market Analysts

Josh Gilbert, Lead Analyst at eToro

"This boardroom storm has landed at a brutal time for the AI trade, but Nvidia’s earnings on 17 November are the real next test. While the investigation is likely to dent sentiment, it won’t alter anything long-term unless it leads to a change at the top, at which point it becomes a completely different ball game."

Chris Weston, Head of Research, Pepperstone

"Will Huang get replaced? No, I don't think that's going to happen. I think given that he is like the godfather of AI and, you know, the OG of what has been the biggest investment thematic that we've seen in a generation, I mean, I think if we genuinely thought he was going to step down ... the stock would be down - it would be an absolute bloodbath, to be honest.

Potential Consequences

"If it is found out that she's confirmed as a spy, then, crikey, it doesn't go well."

(Reporting by Sumedha Mukherjee, Tom Westbrook, Brenda Goh and Jeanny Kao; Compiled by Anne Marie Roantree; Editing by Jamie Freed)