Nvidia Board May Oust CEO Jensen Huang Amid Scandal
Original: Nvidia’s stock drops as board reportedly preps to oust CEO Jensen Huang
Why This Matters
Leadership instability at Nvidia threatens supply and direction of AI chip development.
Nvidia's board is meeting as early as Wednesday to decide Jensen Huang's fate after he admitted to an extramarital affair with a suspected Chinese spy and reports emerged of a second affair with a direct report. NVDA stock fell ~8% after hours.
Nvidia's board is preparing to remove co-founder and CEO Jensen Huang, who has led the company for 33 years, the Wall Street Journal reported Wednesday. The board was set to meet as soon as that evening to determine his future at the company.
The crisis accelerated quickly. On Sunday, Huang publicly admitted to an extramarital affair with a woman U.S. intelligence sources identified as a Chinese spy. Then, Wednesday evening, the New York Times reported a second affair — this one with a Nvidia executive who reports directly to him, raising separate concerns about workplace conduct.
Investors reacted sharply: Nvidia stock dropped roughly 8% in after-hours trading Wednesday and is down about 11% over the past five days. The company has become one of the world's most valuable, riding demand for AI chips — making the leadership vacuum especially consequential.
Succession is an open problem. Huang is known to delegate very little and has approximately 60 direct reports. No obvious internal successor or formal succession plan has been identified publicly.