Nvidia Board Reportedly Weighs Ousting CEO Jensen Huang as Shares Fall 8% After Hours

TL;DR

• Nvidia is reportedly preparing to remove co-founder Jensen Huang as CEO after 33 years at the helm.
• The Wall Street Journal reported that Nvidia’s board could meet as early as Wednesday to decide Huang’s future.
• Huang acknowledged an extramarital affair on Sunday. The New York Times later reported that he also had an affair with an executive who reports to him.
• Nvidia shares fell about 8% in Wednesday’s after-hours trading. The stock was down about 11% over five days.

Nvidia is reportedly preparing to replace Jensen Huang, the co-founder who has led the chipmaker for 33 years. The Wall Street Journal, citing people familiar with the matter, reported that Nvidia’s board could meet as early as Wednesday to determine whether Huang would remain CEO.

Board weighs Huang’s future amid independent investigation

On Sunday, Huang acknowledged in a message to employees that he had been unfaithful to his wife. He did not identify the other person. Media reports have linked him to former Megaspeed executive Alice Huang, whom a memo cited in those reports alleged had been recruited by Chinese intelligence. Nvidia’s board opened an independent investigation into reports that its CEO had been targeted by a foreign intelligence effort.

On Wednesday evening, The New York Times separately reported that Huang had also had an affair with an Nvidia executive who reports directly to him.

Nvidia looks for potential successors as shares slide

Bloomberg reported that Nvidia is working with an outside firm to identify potential CEO candidates. Huang, who has said he has about 60 direct reports, has led Nvidia since its founding. The company has grown into one of the world’s most valuable businesses as demand for its AI chips has surged.

Nvidia shares fell about 8% in Wednesday’s after-hours session. The stock was down roughly 11% over five days.