Nvidia’s board of directors convened late Wednesday to determine whether to remove long time CEO Jensen Huang from his position. A source familiar with the matter told Reuters that the decision comes as the world’s dominant supplier of artificial intelligence chips faces significant scrutiny. The crisis is fueled by reports of two extramarital affairs involving the executive and an ongoing investigation into his alleged connections with a Chinese spy.
This development marks a sharp reversal from Sunday, when the board had publicly expressed confidence in Huang and his leadership team. According to Nvidia’s bylaws, the CEO can be removed by a majority vote of the directors, with or without cause. The company currently has 11 directors, all of whom are considered independent except for Huang himself.
The market reacted swiftly to the unfolding events. Nvidia shares dropped more than 8% in extended trading after the Wall Street Journal reported that the company was preparing to fire its chief executive. If these losses are sustained, the chipmaker would have lost approximately $600 billion in market value since the board announced its investigation into Huang’s relationship with a businesswoman identified as Alice Huang, who is alleged to be a Chinese spy.
The revelations that US intelligence agencies were probing Alice Huang for facilitating chip shipments to Chinese firms triggered a chain of reactions. Wall Street analysts began questioning Nvidia’s corporate governance and Huang’s personal conduct. In response, the board launched an internal investigation and hired outside legal counsel, while lawmakers pushed for stricter regulations on chip exports to China.
Armina Rosenberg, a portfolio manager and co founder of Minotaur Capital which holds Nvidia shares, noted that the market is beginning to price in the likelihood of Huang’s departure. She described the situation as a real blow to the company, stating that the market is no longer viewing his exit as a tail risk but as a probable outcome.
Huang, who is 63, co founded Nvidia and built it over more than three decades into a roughly $4 trillion company. He owns about 3.6% of the stock and maintains tight control with dozens of direct reports. Bloomberg reported that the board has been working with an outside firm to identify potential replacements. While Chief Financial Officer Colette Kress is seen as a natural interim choice, questions remain about who will lead the company’s long term technology roadmap.
Earlier on Wednesday, the New York Times reported that Huang had also had an affair with Kimberly Powell, the company’s vice president of healthcare. When contacted by phone about the relationship, Huang reportedly said, “I don’t think you should be talking to me directly,” before hanging up. Nvidia and Powell did not immediately respond to comment requests, and Reuters could not independently verify the report.
The leadership turmoil creates uncertainty ahead of the company’s quarterly financial results due on November 17. On prediction markets, the odds of Huang resigning or being removed by year end rose to 88%, with Ian Buck, who oversees Nvidia’s data centre business, favored as a potential successor.
The broader market felt the impact as well. US stock futures sank, with Nasdaq futures down 1%. Shares of Micron and CoreWeave fell in after hours trading, while rivals AMD and Broadcom saw gains. In Asia, Samsung Electronics rose slightly, and SK Hynix dipped. Analysts warned that while immediate demand for Nvidia chips may hold, the broader ecosystem of data center customers could face challenges if the leadership instability persists.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and took full responsibility. US President Donald Trump voiced support for the Nvidia chief, a close ally, though he said he had not discussed the allegations with Huang. Huang may face a congressional subpoena if he does not provide a closed door briefing regarding the allegations. Additionally, reports suggest that Commerce Secretary Howard Lutnick stalled a presidential crackdown on companies suspected of diverting Nvidia chips to China.
