Nvidia has opened an independent investigation after reports that its founder and chief executive, Jensen Huang, was the target of a foreign intelligence effort, the company said on Sunday.

The chipmaker's board said it was acting in light of recent reporting about Huang, and that a committee of independent directors, assisted by outside independent counsel, would oversee the inquiry.

"The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort," the board said in a statement issued on Sunday afternoon.

The board said it had no reason to believe that either national security or Nvidia secrets had been compromised, but added that its inquiry would examine all available information. It said it prioritised United States national and economic security, which it described as paramount to the interests of Nvidia and its shareholders.

Huang fully supports the review and has committed to cooperating with it, according to the statement. The board said it had confidence in Huang and his leadership team, and that it would provide further updates as appropriate.

The announcement comes at the end of a bruising week for Nvidia's shares. The stock fell by more than 9% in Thursday's sell-off, its biggest single-day slide in 21 months, as investors questioned the scale and returns of spending on artificial intelligence infrastructure. The shares were on course for a fifth consecutive weekly fall, the first such run in four years.

The wider market has been caught in the same retreat. The Nasdaq Composite fell by more than 10% from its record close on 6 October during Thursday's trading, crossing the threshold for a market correction, while the S&P 500 lost 4.4% on the day. The sell-off has been driven by doubts over whether the huge sums being poured into AI data centres will generate matching returns, and by the prospect of tighter regulation of the industry under the incoming Democratic-controlled Congress.

Against that backdrop, the board's move adds a new uncertainty for investors in the world's most valuable chipmaker. Huang, who founded the company, is closely identified with its rise from a graphics-chip maker into the central supplier of the AI boom. The board's statement did not describe the nature of the reported intelligence effort, say when it is alleged to have taken place, or give a timetable for the investigation.

Investors will now watch for any further detail from the board, and for whether the inquiry affects the company's schedule. Nvidia is due to report its third-quarter results on 17 November, when Huang and his senior team will face questions from analysts for the first time since the investigation was announced.