NVIDIA expected to oust Jensen Huang - report

NVIDIA’s (NASDAQ:NVDA) board of directors is preparing to oust co-founder and CEO Jensen Huang after two extramarital affairs have come to light, including one with a suspected Chinese spy, according to reports from The Wall Street Journal.

A New York Times report Wednesday afternoon said Huang maintained an extramarital relationship with Kimberly Powell, the company’s vice president of healthcare—a senior executive who reports to him.

Over the weekend, Huang admitted to an affair with Alice Huang, a Chinese businesswoman alleged to be a spy.

NVIDIA shares fell 8% after hours Wednesday.

The company’s board is expected to meet as soon as today to discuss Huang’s future. Directors are also reviewing whether the reported relationships created conflicts of interest or exposed the company to security risks.

Huang, who co-founded NVIDIA in 1993, has led the company through an extraordinary transformation. Originally known primarily for its graphics processors, NVIDIA has become the world’s dominant supplier of chips powering artificial intelligence, cloud computing and advanced data centers. Its market value has soared alongside the global AI boom, making Huang one of the most influential figures in the technology industry.

The allegations involving Alice Huang have attracted particular scrutiny because of her suspected connections to Chinese intelligence. U.S. officials are reportedly examining whether the relationship created opportunities for sensitive business or technology information to reach Beijing.

NVIDIA’s board has launched an independent investigation with the assistance of outside legal counsel. The company has said it has no reason to believe that trade secrets or national-security information have been compromised.

The controversy presents an enormous challenge for directors. Huang is widely viewed as the driving force behind NVIDIA’s success, and replacing him could create uncertainty at a critical moment for the company and the broader AI industry.

Investors have already reacted to the turmoil. NVIDIA shares fell 8% in after-hours trading Wednesday as concerns grew over the potential leadership shake-up and its implications for the company. Shares fell 4.3% on Monday and another 5.5% on Tuesday before seeing a small rebound of 2.9% before trading closed today.

For now, Huang’s future remains uncertain. But the mounting allegations have put one of the technology industry’s most celebrated CEOs under unprecedented scrutiny—and left NVIDIA facing a potentially historic leadership crisis.