Nvidia shares dropped late Sunday following the launch of an independent board investigation into CEO Jensen Huang over an extramarital affair he admitted to, according to reports.

The semiconductor giant's stock fell roughly 4.2% in late-night trading on the Robinhood platform.

On the other hand, shares of Nvidia's Asian suppliers largely shrugged off the news, following a broader rebound among US tech peers.

The internal probe was initiated after Huang acknowledged being unfaithful to his wife and apologized to employees, board members, and shareholders in a company-wide memo over the weekend.

The investigation follows media reports alleging Huang had a relationship with a former Megaspeed International executive suspected by US intelligence agencies of acting as a Chinese intelligence operative.

US Secretary of State Marco Rubio reportedly supervised the preparation of a classified intelligence memo earlier this year warning senior administration officials about counterintelligence concerns surrounding the relationship.

Huang pledged full cooperation with the independent board inquiry while reaffirming his commitment to US national security and company operations.

The development adds fresh pressure on the artificial intelligence chipmaker, whose stock has faced selling pressure since last month amid concerns over technology spending and US midterm election outcomes. (AA)