Nvidia board meets to decide CEO Jensen Huang’s future, sources say

Detailed summary

Company is grappling with reports of two extramarital affairs involving its leader as shares slide about 8% in after-hours trading

Nvidia’s NVDA-Q board is meeting on Wednesday to decide whether to oust CEO Jensen Huang, a source familiar with the matter told Reuters, as the world’s dominant supplier of AI processors grapples with reports of two extramarital affairs involving its longtime leader.

Nvidia did not immediately respond to a request for comment on the board meeting.

Huang’s potential departure would leave a leadership vacuum at the roughly US$4-trillion chipmaker he co-founded and built over more than three decades to become the top supplier of AI chips at the centre of the global artificial-intelligence boom and US-China technology rivalry.

Huang, 63, has no obvious successor and owns about 3.6 per cent of Nvidia’s stock. He also has dozens of direct reports, underscoring the tight control he maintains over the company.

“Huang being removed immediately could be challenging for Nvidia since it does not have a succession plan in place ... If Mr. Huang broke the law or violated company policies, the board is likely to act as soon as they have proof,” Gil Luria, head of technology research at D.A. Davidson, said.

The company’s shares slid about 8 per cent in after-hours trading after the Wall Street Journal first reported that Nvidia was preparing to oust Huang. Including Wednesday’s after-hours selloff, Nvidia has lost about US$600-billion in stock market value this week since the board announced its investigation into his relationship with a Chinese businesswoman.

Earlier in the day, the New York Times reported that Huang had also had an extramarital affair with a company executive who reported to him.

The relationship was with Kimberly Powell, Nvidia’s vice president of health care, the New York Times said, citing five people who worked at the company.

When reached by phone Wednesday and asked about his relationship with Ms. Powell, Mr. Huang said, “I don’t think you should be talking to me directly.” He then hung up, the New York Times reported.

Opening of the article, excerpted from The Globe and Mail (Report on Business). To read the rest, open the article on the publisher's site.