Nvidia's stock experienced a more than 4% decline on Monday, marking the first trading session since the company announced an independent investigation into its CEO, Jensen Huang. The probe was initiated following reports that Huang has been the subject of a foreign intelligence-gathering operation originating from China.

This development comes at a critical time for Nvidia, a company that has become a dominant force in the technology sector, largely due to its pivotal role in supplying chips for the artificial intelligence boom. Nvidia's market capitalization recently surpassed $4 trillion, making it the second-largest company globally, trailing only Apple.

The company confirmed in a statement on Sunday that its board of directors initiated the investigation. The review will be conducted by a committee of independent directors, with the assistance of external legal counsel. Nvidia stated that CEO Jensen Huang fully supports the review and pledged his cooperation.

The implications of this investigation extend beyond Nvidia's stock performance. A group of senior congressional and intelligence officials, known as the Gang of Eight, is scheduled to receive a national security briefing on Monday. According to sources familiar with the matter, the alleged Chinese spy plot involving Huang is expected to be a topic of discussion during this briefing.

Reports from The New York Times last month detailed allegations that Jensen Huang was targeted by a Chinese espionage plot. The report identified a woman, Alice Huang, described as a top executive at Singapore-based data company Megaspeed, as central to the operation. U.S. intelligence officials reportedly determined that she was funneling information to Beijing and had cultivated a close relationship with Nvidia's CEO.

The Chinese government has vehemently denied these allegations, characterizing them as baseless and slanderous. Representatives for Alice Huang and her employer, Megaspeed International, did not respond to requests for comment following the initial report.

An Nvidia spokesperson previously stated that Jensen Huang's interactions with Ms. Huang were not unusual and were consistent with his professional responsibilities. Despite the ongoing investigation and the allegations, the broader U.S. stock market showed resilience on Monday, with major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq all posting gains.