Nvidia tumbles as investors consider future without CEO Jensen Huang

Detailed summary

Nvidia shares tumble as investors weigh CEO Jensen Huang’s future after reports of a relationship and board concerns. Read more at straitstimes.com.

Nvidia’s board is reportedly preparing to oust chief executive officer Jensen Huang, who admitted to having an affair with an alleged Chinese spy.

Nvidia stock sank in extended trading on Nov 11 as investors grappled with the possibility of the company without chief executive officer Jensen Huang at the helm.

The stock began to fall in postmarket trading following a New York Times report that the CEO had a relationship with a direct report.

Losses extended after Wall Street Journal reported Nvidia’s board is preparing to oust Huang, who over the weekend had admitted to having a separate affair with an alleged Chinese spy.

“It is going to be a very challenging situation,” said Michael O’Rourke, chief market strategist at Jonestrading.

“Jensen had forecast 70% sales growth this year (2026). With the vendor financing and the aggressive tactics, his successor will spend the next year putting out fires and cleaning up messes.”

He added: “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.”

Other AI-linked stocks followed shares of Nvidia lower in postmarket trading.

Shares of CoreWeave shed more than 5%, Intel and Dell Technologies each fell 3% and Super Micro Computer declined more than 4%.

Opening of the article, excerpted from The Straits Times Business. To read the rest, open the article on the publisher's site.