Nvidia board weighs fate of its boss after new reports

Detailed summary

Media reports that Nvidia boss Jensen Huang had a second affair with an executive who reports to him may force the company's board to oust him, analysts say.

Nvidia's board has met to decide whether to oust chief executive Jensen Huang, a source familiar with the matter says.

The meeting comes as the world's ‌dominant supplier of artificial intelligence chips grapples with fallout from reports of two extramarital affairs involving its longtime leader.

Nvidia did not immediately respond to a request for comment on the meeting, which marks a sharp shift from Sunday when Nvidia's board expressed confidence in Huang and ‌his leadership team.

Under Nvidia's bylaws, Huang can be removed "with or without cause" by a majority vote of directors.

Nvidia's stock slid about seven per cent in early Frankfurt trading on Thursday after the Wall Street Journal first reported that the company ‌was preparing to fire Huang.

If those losses hold, Nvidia will have lost about $US600 billion ($A878 billion) in market value since the board announced its investigation into his relationship with a businesswoman called Alice Huang, who US officials allege is a Chinese spy.

Revelations that US intelligence was probing Alice Huang for facilitating shipments of Nvidia chips to Chinese firms set off a series of events.

Wall Street began raising questions about Nvidia's governance and Jensen Huang's personal conduct while the company's board launched an internal investigation and hired outside counsel.

US politicians also began to push for tighter curbs on chip exports to China.

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