New York:Nvidia shares experienced a decline late Sunday following the initiation of an independent board investigation into CEO Jensen Huang. The probe was launched after Huang admitted to an extramarital affair, which he disclosed in a company-wide memo.

According to Anadolu Agency, the semiconductor company's stock fell approximately 4.2% in late-night trading on the Robinhood platform. Despite this, Nvidia's Asian suppliers did not show significant reactions to the news, as they followed a broader recovery trend among US technology companies.

The internal investigation began after Huang confessed to being unfaithful to his wife and issued an apology to employees, board members, and shareholders. The situation escalated due to media reports suggesting Huang had a relationship with a former Megaspeed International executive, who is suspected by US intelligence agencies of being a Chinese intelligence operative.

US Secretary of State Marco Rubio was reportedly involved in supervising the creation of a classified intelligence memo earlier this year. This memo warned senior administration officials about counterintelligence risks related to the relationship. Huang has committed to fully cooperating with the board inquiry and emphasized his dedication to US national security and Nvidia's operations.

This development adds further pressure on Nvidia, as its stock has been under selling pressure since last month amid worries about technology spending and the outcomes of the US midterm elections.