Nvidia shares have slumped following allegations that the chip giant's chief executive had an affair with a Chinese spy, rattling investor confidence in one of the world's most closely watched technology companies.

The claims sent the company's stock price lower, according to reports, as markets reacted to the explosive nature of the allegations against the Nvidia chief.

It is understood the allegations have not been confirmed, but the suggestion of a potential link between the company's leadership and Chinese intelligence has been enough to spook shareholders. Nvidia has not publicly responded to the claims, and the full details of the allegations remain unclear at this stage.