Nvidia board weighs Huang’s future as shares tumble

Detailed summary

The chipmaker’s shares fell as much as 10 per cent after reports that its board was preparing to oust the chief executive ...

Nvidia is working with an outside firm to identify potential replacements for chief executive Jensen Huang.

In late US trading on Wednesday, Nvidia’s shares tumbled as much as 10 per cent following a report by The Wall Street Journal that Nvidia’s board was preparing to oust Huang from his role.

The board’s reported search for a replacement has come following details emerged of two extramarital affairs, including one with a suspected Chinese spy and another with an employee.

The board is planning to meet as soon as Wednesday to determine his future, people familiar with the matter said.

His departure would bring down the curtain on an era during which he stoked the global artificial-intelligence boom and became a geopolitical star. It would leave one of the world’s most valuable companies in need of a new leader.

The company has tapped an outside firm to identify potential candidates following reports of multiple extramarital affairs by Huang.

For more than three decades, Huang’s has taken a hands-on role in shaping Nvidia’s strategy.

Beyond developing the AI accelerators that now dominate the artificial intelligence landscape, Huang has turned the company into an industry kingmaker that oversees a sprawling web of customers, suppliers, partners and investments.

The upheaval at the company, scheduled to report its quarterly results on November 17th, risks further shaking confidence in the AI trade that’s driven much of this year’s global equity rally before coming under increased scrutiny from investors over stretched valuations and the scale of spending on AI.

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