Nvidia’s board is meeting on Wednesday to decide whether to remove chief executive Jensen Huang, a source familiar with the matter told Reuters, as the world’s leading artificial intelligence (AI) chipmaker faces mounting controversy over reports of two extramarital affairs involving its longtime leader.
Nvidia did not immediately respond to a request for comment on the board meeting.
Huang’s possible departure would leave a leadership vacuum at the chipmaker, which he co-founded and built over more than three decades into a company valued at about US$4 trillion.
The company has become the world’s leading supplier of AI processors, placing it at the centre of the global AI boom and the technology rivalry between the United States and China.
Huang, 63, has no obvious successor and owns about 3.6% of Nvidia’s shares. He also has dozens of direct reports, highlighting the close control he maintains over the company.
Gil Luria, head of technology research at D.A. Davidson, said Huang’s immediate removal could pose challenges for Nvidia because the company had no succession plan in place.
He added that the board would likely act once it had evidence if Huang had broken the law or violated company policies.
Nvidia shares fell about 8% in after-hours trading after the Wall Street Journal first reported that the company was preparing to remove Huang.
Including Wednesday’s after-hours losses, Nvidia has shed about US$600 billion in market value this week since its board announced an investigation into his relationship with a Chinese businesswoman.
Earlier on Wednesday, The New York Times reported that Huang had also been involved in an extramarital relationship with a company executive who reported directly to him.
Second affair report deepens controversy
The New York Times identified the executive as Kimberly Powell, Nvidia’s vice-president of healthcare, citing five people who had worked at the company.
When contacted by phone on Wednesday and asked about his relationship with Powell, Huang reportedly told the newspaper: ‘I don’t think you should be talking to me directly,’ before hanging up.
Nvidia and Powell did not immediately respond to requests for comment. Reuters could not independently verify the report.
The latest reports mark a significant escalation in a controversy that began with revelations about Huang’s relationship with Alice Huang, a woman whom US intelligence has said was involved in facilitating shipments of Nvidia chips to Chinese companies.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and said he took ‘full responsibility’, but provided no details about the relationship.
On the same day, Nvidia’s board launched an investigation into whether Huang had been targeted by a foreign intelligence operation.
The investigation is being overseen by independent directors with the assistance of external legal counsel. At the time, the board expressed confidence in Huang.
Investors assess leadership risks
The reports also affected broader market sentiment, with US stock futures falling and Nasdaq futures down 1%.
However, shares of rival chipmakers AMD and Broadcom rose 4% and 3%, respectively, in after-hours trading, reflecting expectations that they could gain market share, according to an analyst.
Investors and analysts said demand for Nvidia’s chips was unlikely to weaken in the near term, although companies within its wider business ecosystem could face difficulties.
Nick Ferres, chief investment officer at Singapore-based Vantage Point Asset Management, said Nvidia was also central to the circular financing supporting the investment boom.
‘They are financing their customers. In these types of booms or bubbles, sometimes all it takes is a slowdown to shift it into the bust phase,’ he said.
US President Donald Trump said he had not discussed the allegations with Huang but expressed support for the Nvidia chief, describing him as ‘an honourable guy’ who had ‘done an amazing job for our country’.
Huang could also face a congressional subpoena if he fails to respond to a request to provide a closed-door briefing on allegations that he had a close relationship with the Chinese businesswoman who passed information to Beijing.
Separately, Axios reported on Wednesday, citing senior sources, that US Commerce Secretary Howard Lutnick had delayed Trump’s efforts to crack down on companies suspected of diverting Nvidia chips to China.
The White House and a spokesperson for Lutnick did not immediately respond to requests for comment.
Huang co-founded Nvidia in 1993 with Curtis Priem and Chris Malachowsky.
The company initially made its mark with graphics processors for computer games before its CUDA software expanded the use of its chips into general computing and, subsequently, artificial intelligence.
