Why is NVIDIA stock tumbling after hours today?

NVIDIA stock tumbled 7.6% in after-hours trading to $160.50 on Wednesday after the Wall Street Journal reported that the company’s board is preparing to oust co-founder and CEO Jensen Huang, with a board meeting convened as soon as Wednesday evening to decide his fate following revelations of two extramarital affairs, including one with a woman suspected of being a spy for the Chinese government.

The New York Times added further fuel to the fire by reporting a second affair — this one with Kimberly Powell, Nvidia’s own vice president of healthcare — raising acute corporate governance concerns given that Powell reports directly to Huang.

The leadership crisis has drawn in federal authorities, with President Trump confirming that the FBI is investigating Huang’s relationship with the alleged spy, Alice Huang, an executive at Singapore-based data center firm Megaspeed. On the analyst front, Baird issued a rare downgrade of the stock to Neutral from Outperform and slashed its price target by 60% to $200, while Morgan Stanley removed NVDA from its Top Pick list; Yorkville Ives, which maintained its Outperform rating, nonetheless warned that the stock could lose an additional 25–30% of its value in a scenario where Huang is removed, assigning roughly a 15% probability to that outcome.

The broader market offered no shelter, with Nasdaq futures down 0.8%. During the regular Wednesday session, Nvidia had briefly rebounded — lifted by CoreWeave’s better-than-expected quarterly results and raised revenue outlook, which boosted sentiment across the semiconductor sector — but those gains evaporated entirely once the after-hours board-removal reports hit the wires.