Nvidia board reportedly preparing to oust CEO Jensen Huang as shares fall more than 9% after hours
Nvidia's board is reportedly preparing to replace CEO Jensen Huang as a second alleged affair surfaces, adding to an independent board investigation that began on Sunday. The company's shares fell in after-hours trading after the Wall Street Journal's report, and the reports point to a possible leadership change at the largest U.S. chipmaker, a key holding in major indexes.
Nvidia's board of directors is reportedly moving toward replacing Jensen Huang as chief executive. The push follows allegations of a second extramarital relationship, on top of the affair Huang acknowledged earlier this week.
What has been reported
According to CBS News, citing two people familiar with the matter, the board is preparing to replace Huang in the near term. CBS said the Trump administration is aware of the matter. The Wall Street Journal was first to report the board's moves, CBS said.
The Journal's account, as relayed by CNBC, said the board could meet as soon as Wednesday to decide Huang's future at the company. Nvidia shares fell more than 9% in after-hours trading after that report, according to CNBC.
Separately, CNBC cited a New York Times report that named an Nvidia employee, Kimberly Powell, as the other party in an alleged affair with Huang. The company's response to that account was not stated in the coverage available for this story.
The earlier affair and the investigation
Huang disclosed the relationship in an email to employees on Sunday, saying he had been unfaithful. Earlier reporting said the woman is believed by U.S. intelligence to be a Chinese spy.
Nvidia's board then said it was launching an independent investigation. It said it had no reason to believe national security or company secrets had been compromised, and that its inquiry would examine all available information. Bloomberg reported that a committee of independent directors, working with outside counsel, is handling the probe. CNBC reported that the board hired the law firm Wachtell, Lipton, Rosen & Katz.
Huang's position has shifted since Sunday. A company spokesperson had earlier said that "today's news will not slow" Nvidia and that Huang was committed to leading the company as CEO, according to NBC News.
Why it matters for US investors
Some analysts have turned more cautious. Fox Business also reported downgrades from Wall Street analysts. One analyst cited in Fox Business coverage, Adam Johnson, argued that the company's growth outweighs the executive scandal and still rated the stock a buy.
The AI sector may also feel the effects. Bloomberg reported that the affair has become a focus of internal and government investigations and could spread to the broader AI industry. Investors should also note that the board has not said whether it will act on the reported push, and the timing of any decision was not confirmed.
Sources
- Nvidia preparing to replace CEO Jensen Huang as second alleged affair emerges: report foxbusiness.com
- Nvidia's board preparing to oust CEO Jensen Huang, sources say cbsnews.com
Written with AI assistance on Nov 11, 8:01 PM ET from the reports listed under Sources, and reviewed by our editor after publication. Before it was published, every figure was checked against those reports, and passages with figures that could not be found there were left out. It can still contain mistakes: read the sources before acting on anything. How we review. Not investment advice.