Nvidia sinks after report implicates CEO Jensen Huang in 2nd affair
Shares in Nvidia sank Wednesday night after the New York Times reported CEO Jensen Huang had a second affair with a senior executive who reports to him. Why it matters: The report adds to mounting scrutiny of Huang, already under investigation over an affair with a purported Chinese spy. The potential impact goes beyond one man and one business, though. Huang is arguably the world's most powerful…
Nvidia's stock plummeted following a New York Times report alleging CEO Jensen Huang engaged in a second affair with a subordinate executive. This development comes amid an ongoing investigation into a previous affair with a Chinese spy. Huang, widely considered the most influential CEO globally, leads a company at the forefront of the AI revolution, with no immediate successor in place.
The report revealed Huang and Kimberly Powell, Nvidia's vice president of healthcare, were photographed engaging in affectionate behavior during a March conference in San Jose. Both are married to others. Nvidia declined to comment, and Powell did not respond to requests for information. After-hours trading saw Nvidia shares drop approximately 5%, erasing about $1 trillion from the company's market capitalization since the initial report on October 29.
The odds of Huang stepping down by January 1 doubled on a prediction market after the latest report. Nvidia has formed an independent panel and hired Wachtell, Lipton, Rosen & Katz to conduct the probe. Business ethics experts suggest Huang's job may be at risk, emphasizing the inappropriate nature of such relationships with direct reports. The situation could also prompt scrutiny over the board's awareness and actions.
Written by urgent.news from Axios's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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