Nvidia board reportedly preparing to oust Jensen Huang after second affair report
The Wall Street Journal reported the board's plans on Wednesday, citing people familiar with the matter. A separate source told Reuters that directors were meeting that same evening. Nvidia shares dropped about 8% in after-hours trading. Read Entire Article
The Nvidia board appears poised to remove CEO Jensen Huang amid allegations of two further extramarital affairs. The board's confidence in the company's founder waned after the second incident, involving an executive at Nvidia's major customer, Megaspeed. Huang, who co-founded the chipmaker in 1993, is the company's sole CEO to date.
The board's plans were reported by The Wall Street Journal, citing sources familiar with the matter. Nvidia shares plummeted by around 8% in after-hours trading following the reports. The first affair surfaced on Sunday, when Huang disclosed in a written message to his staff that he had been unfaithful to his wife. US intelligence sources suspect the second woman, who is not related to Huang, might be a Chinese intelligence asset.
Despite this, Nvidia maintains that its dealings with her were routine. The board met on Wednesday to deliberate on Huang's future, and Bloomberg reports they are working with an outside firm to identify candidates. Meanwhile, some directors favor CFO Colette Kress as the interim CEO, while Apple hardware chief Johny Srouji is also reportedly being considered.
Huang, while the company's largest individual shareholder, owns only about 3.6% of Nvidia. A simple majority of the board can remove him as CEO, with or without cause.
Written by urgent.news from TechSpot's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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