Nvidia shares crash 9% on reports of another Jensen Huang affair, board preparing for ouster

Résumé détaillé

On Wednesday, the New York Times reported that Huang, apart from his admitted affair with Alice Huang, alleged to being a Chinese Spy, also had an affair with Kimberly Powell, the company's Vice President of Healthcare, citing sources who worked a the company.

Shares of Nvidia Corp. fell as much as 9% in extended trading on Wednesday, November 11, after a spate of media reports ranging from another affair of its CEO Jensen Huang to the board preparing to sack him due to these developments.

The afterhours fall comes after the stock had seen a minor, 3% rebound in regular trading on Wednesday, after a 10% fall in the last two trading sessions, since the scandal came to light.

On Wednesday, the New York Times reported that Huang, apart from his admitted affair with Alice Huang, alleged to being a Chinese Spy, also had an affair with Kimberly Powell, the company's Vice President of Healthcare, citing sources who worked a the company.

The NYT report cited Huang and Powell being captured on video being affectionate at a hotel in San Jose, during the company's conference in March this year.

CNBC then went on to report citing sources that the rumours of Huang and Powell's affair have circulated for years, as she does not have any health or science background and yet holds the position she does.

Later, the Wall Street Journal reported that Nvidia's board is preparing to oust Huang from his position, one that he has held since he co-founded the company back in 1993.

According to Michael O'Rourke of Jonestrading, it is going to be a very challenging situation for Nvidia's board.

"If these allegations are confirmed by the independent investigation, one has to expect the board to remove him. That is the standard for corporate governance today. Even worse this is a pattern," he said.

The resumption of selling in Nvidia has dragged other chip stocks and the Nasdaq futures down with it. Shares of CoreWeave, after a 24% rally in regular trade, slumped 5% in afterhours, while Intel, Dell, Super Micro shares fell between 3% to 4%. The Nasdaq futures are also down close to 300 points.

Début de l'article, extrait de CNBC-TV18. Pour lire la suite, ouvrez l'article chez le média.