Nvidia Board May Vote to Remove Jensen Huang as CEO Tonight. Here’s What Investors Need to Know.

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Learn more Nvidia's (NASDAQ:NVDA) board may vote to remove founder and CEO Jensen Huang as soon as this evening, reports the Wall Street Journal, citing people familiar with the…

Nvidia's (NASDAQ:NVDA) board may vote to remove founder and CEO Jensen Huang as soon as this evening, reports the Wall Street Journal, citing people familiar with the matter. Such a move would be a shocking reversal of fortune for Huang, who became the face of the global AI boom and the leader of the world's first $5 trillion company.

It would also put Nvidia, which has dominated the high-end microprocessor market for decades, in the uncomfortable position of needing a new leader even as its stock has fallen sharply over the past month.

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Here's why the board may feel compelled to vote on a move that would have seemed unthinkable just a week ago.

The turmoil stems from a revelation over the weekend involving Alice Huang (no relation to Jensen Huang), an executive at the Singapore-based data company Megaspeed.

Megaspeed is a major Nvidia customer, and the two Huangs were frequently seen together in a business context. Megaspeed was among several companies using Nvidia chips to build AI data centers in Southeast Asia and was suspected of diverting some of the products to China. U.S. intelligence officials now believe Alice Huang has been working for China's intelligence services, and the Justice Department has reportedly launched multiple investigations involving her.

On Sunday, Jensen Huang acknowledged in a letter to staff that he had been unfaithful to his wife, without naming the other party or parties in the affair. His reference in the letter to "national security concerns" suggests that this referred to Alice Huang.

However, The New York Times has reported that Jensen Huang also had a separate affair with an Nvidia employee.

The scandal has highlighted Nvidia's lack of a clear succession plan, which…

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