The board is reportedly preparing to discuss his future at the helm of the nearly USD 4 trillion chipmaker.
The company’s board is actively considering the ouster of the 63-year-old co-founder. The Wall Street Journal reported on Wednesday that the board was planning to remove Huang and was scheduled to have a meeting to determine his fate. Reuters separately confirmed the board was gathering to consider his removal.
As the crisis deepens, the board has reportedly been working with an outside firm to identify potential successors. Huang, who co-founded Nvidia in 1993, owns approximately 3.6 per cent of the company and has remained central to its strategy for more than three decades.
The newspaper cited five people who had worked at Nvidia. Two of them reportedly described a video showing Huang and Powell behaving affectionately at a hotel in San Jose, California, during a company conference in March. Nvidia and Powell did not immediately respond to requests for comment.
Beyond the relationship with Powell, Huang faces scrutiny over a prior extramarital affair with a Chinese businesswoman. Reports indicate this individual is linked to Megaspeed, a Singapore data-center company that is a large Nvidia customer.
US intelligence reportedly suspects her of being a Chinese intelligence asset. The board has opened an investigation into the matter, and the company has stated it has “no reason to believe” secrets were compromised. According to CBS News, the Trump administration was aware of the developments.
Huang had previously said he was unfaithful in a note to employees, stating he takes “full responsibility” for his mistake. The company has retained outside counsel to assist with its internal probe. Despite the unfolding governance crisis, no formal decision on Huang’s removal had been publicly announced as of the latest updates.
Nvidia shares plunged more than 8 per cent in after-hours trading on Wednesday following the reports. The stock fell to USD 159.51 in extended trading. The leadership uncertainty comes just ahead of Nvidia’s quarterly earnings announcement scheduled for November 17, when investors are expected to examine the company’s financial performance and outlook.
Dan Ives values Nvidia at $300 with Huang and $225 without him, highlighting the “key-man risk” posed by the lack of a succession plan.
Major tech names in the Nvidia supply chain, including South Korea’s SK Hynix, Taiwan’s TSMC, and Japan’s Advantest, saw their shares fall as the board met. Global markets also reacted, with Japan’s Nikkei 225 falling 0.70%, South Korea’s Kospi declining 0.61%, and Hong Kong’s Hang Seng dropping 1.43% as of the last hour of trade.
Investors remain focused on the company’s governance, with the upcoming quarterly report serving as a critical checkpoint for the future of the world’s most valuable artificial intelligence chipmaker.
Earlier coverage: Nvidia CEO Jensen Huang Apologizes to Staff
