Jensen Huang Faces Possible Exit as Nvidia Shares Fall More Than 8%

Shares of American technology giant Nvidia plunged in after-hours trading on Wednesday after reports emerged that the company’s board of directors was considering removing its longtime chief executive, Jensen Huang, amid a growing corporate controversy.

Nvidia shares fell more than eight per cent following reports that the board was meeting to discuss Huang’s future at the company, raising concerns among investors about the leadership of one of the world’s most valuable technology businesses.

According to Reuters, the board was considering whether to remove Huang, who co-founded Nvidia in 1993 and has led the company for more than three decades.

The reported meeting followed revelations about two alleged extramarital relationships involving the 63-year-old executive, including a relationship with a businesswoman identified as Alice Huang, who is reportedly under investigation by US intelligence agencies over suspected links to Chinese intelligence activities.

The allegations have raised national security concerns because of Nvidia’s central role in supplying advanced artificial intelligence chips, some of which are subject to strict US export restrictions on sales to China.

Nvidia’s board announced on November 8 that it had launched an independent investigation into reports that Huang had been the target of a foreign intelligence operation.

The investigation is being overseen by a committee of independent directors and supported by external legal counsel.

In a message to employees, Huang acknowledged being unfaithful to his wife and said he took full responsibility, although he did not disclose details of the relationship.

The controversy widened on Wednesday after The New York Times reported that Huang had also been involved in an alleged relationship with a senior Nvidia executive who reportedly worked under him. Reuters said it could not independently verify that report.

The developments have intensified questions about corporate governance, national security and the company’s dependence on its founder.

According to CNN, there had been expectations among some Trump administration insiders that the board meeting could result in Huang’s removal, although no final decision had been publicly confirmed.

Under Nvidia’s corporate bylaws, the chief executive can reportedly be removed with or without cause through a majority vote of the company’s directors.

Huang owns approximately 3.6 per cent of Nvidia and has played a central role in transforming the company from a graphics-processing chip manufacturer into a dominant supplier of artificial intelligence processors.

His possible departure has unsettled investors because the company has no clearly established successor.

Nvidia’s chief financial officer, Colette Kress, has been mentioned as a possible interim replacement, while other senior executives have also been discussed as potential successors.

The market reaction has extended beyond Nvidia, with uncertainty surrounding the company’s leadership weighing on technology stocks and broader market sentiment.

The reported board deliberations come shortly before Nvidia is expected to release its quarterly financial results on November 17, an announcement investors will be watching closely for indications of continued demand for artificial intelligence chips.

Despite the controversy, Nvidia remains a major force in the global artificial intelligence industry, supplying processors used by leading technology companies to develop and operate advanced AI systems.

The outcome of the board’s deliberations could therefore have significant implications not only for Nvidia but also for the wider technology sector and the global artificial intelligence industry.