Jensen Huang faces second affair claim as Nvidia board weighs his future

Nvidia's CEO, Jensen Huang, is under fresh scrutiny as allegations of a second affair emerge. The New York Times claims Huang had a romantic relationship with Kimberly Powell, the company's vice president of healthcare, who has worked at Nvidia for over 18 years. Powell's connection to the board's investigation into Huang's relationship with Alice Huang remains unclear, as Nvidia has declined to comment on the matter.

The company's code of conduct requires the investigation of reported misconduct, but it is uncertain if the investigation will expand to include the alleged affair. The scandal follows Huang's admission to being unfaithful to his wife, which sparked concerns about potential foreign intelligence targeting. The board is considering Huang's future, with reports suggesting they may oust him.

Nvidia's shares dropped over 8% in after-hours trading following the news. The fallout extends beyond the boardroom, as the scandal has prompted lawmakers to seek tighter controls on chip sales to China. Nvidia's chips are crucial to the global AI infrastructure, and the controversy has bolstered efforts to regulate their distribution.

Analysts estimate Nvidia's value at $300 a share with Huang as CEO and $225 without him. With no clear successor in place, Huang's 63-year-old co-founder is facing an uncertain future. House Republicans are pushing for Huang's testimony and have considered issuing a subpoena, while both parties advocate for stricter regulations on chip exports to China.

Despite the controversy, Huang is still set to speak at Nvidia's upcoming GTC event in Washington, scheduled from December 1 to 3.