Nvidia shares fell 9.63% in after-hours trading on Wednesday, to $157.00, after The New York Times reported that CEO Jensen Huang had a second extramarital affair. The stock had closed the regular session up 2.92% at $173.73.
Who the Second Report Involves
The Times said Huang had a relationship with Kimberly Powell, Nvidia’s vice president of health care, who reports to him. It cited five people who worked at the company. Both are married to other people.
Huang reportedly hung up when the Times contacted him and Nvidia declined to comment.
Nvidia’s code of conduct asks employees to avoid conflicts of interest, including those arising from personal relationships.
Is Huang Being Removed?
Minutes later, The Wall Street Journal reported that Nvidia’s board is preparing to remove Huang, citing people familiar with the matter. The board could meet as soon as today to decide his future.
No final decision or official announcement has been made.
The shift is sharp. On November 8, the board said it had “confidence in Jensen and his leadership team” as it opened a probe into his first affair.
“Boards are risk averse institutions comprised of individuals who are obsessed about being sued,” said Gary Black, Managing Partner at The Future Fund LLC.
That affair, which Huang admitted on Sunday, was with Alice Huang, a Megaspeed executive whom US officials have identified as a Chinese intelligence asset. China denies this.
Who Could Run Nvidia Next?
Nvidia has not disclosed a succession plan. Huang co-founded the company in 1993.
“There is no succession plan,” Wedbush analyst Dan Ives told Newsweek. Analysts have named chief financial officer Colette Kress as a possible interim leader.
Nvidia reports third-quarter earnings on November 17. As one of the largest stocks in the S&P 500, its moves reach index funds and retirement accounts across the US.
Jim Cramer warned that Nvidia investors need to prepare for a future without Jensen Huang as the company’s CEO.
Polymarket bettors see an 83% chance he is ousted by the end of the month, and a 40% chance before the end of the week.
