Nvidia stock tanks after report of second Huang affair

The Wall Street Journal reported on Wednesday (Nov 11) that Nvidia's board is preparing to oust CEO Jensen Huang due to his involvement in two extramarital affairs. The board is set to meet as early as Wednesday to discuss his future. Huang's extramarital affair with Nvidia's vice-president of healthcare, Kimberly Powell, was confirmed by the New York Times, citing unnamed sources from the company.

The couple was also captured on video displaying affection during an Nvidia conference in March, according to the Times. Nvidia and Powell have not yet commented on the report. This revelation comes amidst a pre-existing investigation into whether Huang was a target of a foreign intelligence effort. Huang's admission of an affair has exposed Nvidia's absence of a succession plan for the CEO, highlighting the inseparable relationship between Huang and the company's success.

Nvidia's shares declined by approximately 3% in extended trading following the report, closing at $173.73 on Wednesday before dropping to $168.71. Huang's potential departure would have far-reaching implications beyond the company's operations, as he is a key figure in the AI boom and a significant investor in AI-related startups and supply chain advancements.

Huang admitted to having an affair with Alice Huang, who is believed to be a Chinese spy, on Sunday. Megaspeed International, a Singapore-based firm and Nvidia's largest South-east Asian customer, is currently under US investigation for potential chip smuggling. Both Megaspeed and Nvidia have denied any wrongdoing. Beijing has dismissed allegations of Chinese espionage on Huang.