Nvidia Stock Sinks Nearly 10% on Second Jensen Huang Affair Report: Is He Out as CEO?

Detailed summary

Nvidia shares fell nearly 10% after hours on a second Jensen Huang affair report, as the board reportedly prepares to remove him.

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.

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.

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.

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.

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.

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.

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