Nvidia Board Weighs Removing CEO Jensen Huang; Shares Slide 8%

Nvidia shares fell roughly 8% in after-hours trading on Wednesday after Reuters reported that the company's board is preparing to remove founder and Chief Executive Jensen Huang. The stock closed the regular session at $173.73, up 2.92%, then dropped to about $160.69 in extended trading.

The report, citing The Wall Street Journal and people familiar with the matter, said directors could meet as soon as November 11 to decide Huang's future. No removal decision has been announced, and Nvidia has not confirmed that the board intends to replace him.

Huang co-founded Nvidia in 1993 and built it into the dominant supplier of artificial intelligence processors. His potential departure would create significant uncertainty over leadership continuity at one of the world's most valuable technology companies.

Why Is the Board Considering Huang's Removal?

The moves follow reports of two extramarital affairs. The New York Times reported that Huang maintained a relationship with Nvidia executive Kimberly Powell, who joined the company in 2008 and leads its healthcare business. The paper said the two were seen behaving affectionately at a hotel during a company conference in March, and described an alleged incident in which a bystander took a photograph and security personnel then sought a nondisclosure agreement.

The second reported relationship adds to scrutiny of Huang's involvement with Alice Huang, a former executive at Singapore-based Megaspeed International. US intelligence officials reportedly suspected her of sharing information with Chinese authorities.

Huang acknowledged being unfaithful to his wife in a November 8 message to Nvidia employees, though he did not identify the person involved. He apologized to his family and colleagues and pledged to cooperate with the board's investigation.

The allegations have already drawn congressional attention. Republican lawmakers are seeking a closed-door briefing on November 18. Neither the reported relationships nor the intelligence allegations establish that Huang knowingly disclosed confidential information or assisted foreign intelligence services.

The takeaway: the board's decision now rests on conduct and governance questions, not on any proven breach.

What Has the Independent Investigation Established?

Nvidia announced an independent investigation on November 8 after reports that its chief executive had potentially been targeted by a foreign intelligence operation. The board said it had no reason to believe that US national security or Nvidia's proprietary information had been compromised, while stressing that the review would examine all available evidence.

On November 10, independent directors appointed former acting US Attorney Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to conduct the review. At that stage, the directors publicly expressed confidence in Huang and the leadership team. Wednesday's reports that they are considering his removal therefore mark a potentially significant change from the board's stated position.

No public findings have established espionage, unauthorized disclosure of Nvidia technology, or wrongdoing involving the company's export controls. A separate shareholder lawsuit alleges Nvidia concealed material security risks tied to Huang's reported relationship with the former Megaspeed executive; those allegations have not been adjudicated.

The two matters are distinct. Removing Huang would not establish an intelligence breach, and retaining him would not resolve questions about governance, disclosure obligations, or regulatory scrutiny.

How Does the Crisis Affect Nvidia Stock?

Wednesday's extended-hours decline reversed gains from earlier in the session, when Nvidia participated in a broader recovery among AI infrastructure stocks. The chipmaker had rebounded alongside other semiconductor companies after CoreWeave raised its revenue outlook, offering some reassurance about demand for AI computing capacity.

The latest board developments have pushed company-specific governance concerns back to the foreground. Shares had already suffered substantial losses earlier in the week as investors weighed uncertainty around Huang's position, growing political attention to semiconductor exports, and doubts about the sustainability of AI infrastructure spending.

Nvidia reports fiscal third-quarter results on November 17, creating an unusually sensitive moment for investors judging both financial performance and management stability. Any announcement on Huang could also shift expectations about Nvidia's relationships with major cloud providers, technology partners, and US policymakers.

What Happens Next?

The immediate question is whether directors formally replace Huang, retain him, or continue the investigation without a leadership change. If a departure is announced, investors will look for details on interim leadership, succession arrangements, and any change to operational strategy or the financial outlook.

Separately, the requested November 18 congressional briefing and the continuing independent investigation could bring further disclosures on the national security allegations.

The November 17 earnings report remains the key test of AI demand, revenue growth, and margins, but an unresolved succession question introduces a layer of valuation uncertainty that strong operating results alone may not remove.