Nvidia’s shares plunge as US tech giant’s board reportedly weighs ousting CEO Jensen Huang

In a surprising turn of events, the board of US tech giant Nvidia is reportedly considering whether to remove CEO Jensen Huang from his position following allegations of multiple affairs. This potential upheaval comes after Nvidia's shares plummeted by nearly 7.5% in after-hours trading, following reports of an affair involving Huang and a woman believed to be a Chinese spy.

Nvidia, currently the world's second most valuable company, is valued at approximately $4.5 trillion and is a leading provider of advanced computer chips. These chips are essential for various technologies, including video games, autonomous vehicles, data centers, and cloud servers. However, their significance is magnified in the context of the AI arms race, as they are crucial for powering artificial intelligence systems, including large language models and generative AI.

The US government has imposed export restrictions on Nvidia's most advanced chips to China since 2022, citing national security concerns. While President Trump has eased some restrictions, the US continues to justify these measures as a means to prevent China from enhancing its military capabilities through access to powerful AI technologies.

Nvidia's stock price had been performing well earlier in the day before the latest news broke. The company's Board had previously expressed no concerns regarding Huang's first alleged affair, stating that there was no evidence suggesting a compromise of the company's secrets or national security. However, the mounting allegations have now prompted the board to reassess the situation, with calls to the company representatives and board members going unanswered as of late Wednesday evening.