Nvidia's stock tumbled more than 9% in after-hours trading on Wednesday after reports surfaced that the company's board is considering removing CEO Jensen Huang. The Wall Street Journal revealed that the board may meet as soon as Wednesday to discuss Huang's future, following allegations of an extramarital relationship with Kimberly Powell, Nvidia's vice president of healthcare. The New York Times reported that the two were seen together in a San Jose hotel in March, sparking speculation about their relationship.
This latest scandal comes just days after Huang admitted to an affair with Alice Huang, whom U.S. intelligence officials suspect is a Chinese spy. Huang apologized to Nvidia employees in a message, acknowledging his unfaithfulness and expressing remorse. The board has launched an independent investigation, enlisting the law firm Wachtell, Lipton, Rosen & Katz to probe the spying allegations.
Huang's personal and professional lives have become increasingly intertwined with controversy. About 800 million of his Nvidia shares are held in trusts co-owned with his wife, while he personally holds around 70 million shares. The stock has been under pressure this week, down 7% before the after-hours drop, marking its sixth consecutive weekly decline. The broader AI infrastructure trade has also faced challenges, particularly after recent elections that could complicate data center construction.
Huang, a prominent figure in the AI industry, has been a key driver of Nvidia's success, with the company's chips powering advanced AI systems and graphics processing units. However, the recent turmoil has raised questions about his leadership and the company's future direction.