Nvidia Shares Plummet Further on Reports That Board is Preparing to Oust Jensen Huang After New Affair

Detailed summary

The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading.…

Nvidia stocks are plummeting on Thursday over reports that the company's board is getting ready to oust CEO Jensen Huang after reports of a new affair.

Company shares were falling almost 7% at 6:19 a.m. in premarket trading. They have fallen more than 23% over the past month.

Jensen Huang had admitted to an affair with Alice Huang, an alleged Chinese spy, on Sunday. China has denied the claims.

As the FBI opened a probe on the matter, Huang sought to continue with his daily activities at the company. But on Wednesday, The New York Times detailed that Huang had another affair with Kimberly Powell, vice president of health care at the company. She reported to Huang.

Analysts told CNBC that, should Huang be effectively removed from his post, the company's stock could fall another 20% as the lack of a clear successor casts doubt on its future.

Huang, 63, oversees Nvidia's strategy, product development and relationships with major technology customers. His role has become particularly important as demand for AI chips has surged among companies building data centers.

Among Nvidia's senior executives, Chief Financial Officer Colette Kress is one of the most familiar names to investors.

Kress has held the position since September 2013 and regularly represents Nvidia during earnings calls and investor conferences. She previously held senior finance positions at Microsoft, Cisco and Texas Instruments and has helped oversee Nvidia's finances through the rapid expansion of its data-center business.

Her experience is primarily in finance rather than chip design or engineering, although she is among the company's longest-serving senior executives.

Opening of the article, excerpted from Yahoo Finance. To read the rest, open the article on the publisher's site.