Nvidia’s board is meeting to decide whether to remove Chief Executive Officer Jensen Huang following allegations of extramarital affairs and concerns over his alleged links to a woman suspected of being a Chinese intelligence operative.
The emergency board meeting, which continued late into Wednesday night, marks a dramatic escalation of the crisis at the world’s most valuable semiconductor company, raising questions about its leadership stability, corporate governance and future direction.
According to Reuters, a source familiar with the matter said the board was considering whether to oust Huang, 63, who co-founded Nvidia and has led its transformation into the dominant supplier of artificial intelligence chips.
Nvidia had not immediately responded to a request for comment on the reported meeting.
The development represents a significant departure from Sunday, when the company’s board publicly expressed confidence in Huang and his leadership team.
Under Nvidia’s bylaws, the CEO can be removed with or without cause through a majority vote of directors. The company has 11 board members, with all except Huang classified as independent.
Nvidia Shares Lose $600 Billion in Market Value
The leadership uncertainty has triggered a sharp sell-off in Nvidia shares.
The stock fell approximately 7% in early Frankfurt trading on Thursday following a Wall Street Journal report that the company was preparing to fire Huang.
If the losses persist, Nvidia would have shed approximately $600 billion in market value since the board announced an investigation into Huang’s relationship with Alice Huang, a businesswoman alleged to have links to Chinese intelligence.
The controversy intensified after reports that US intelligence agencies were investigating Alice Huang over allegations that she facilitated shipments of Nvidia chips to Chinese companies.
China has denied the allegations, while Reuters said it was unable to reach Alice Huang for comment.
The developments have raised concerns among investors about Nvidia’s corporate governance, leadership structure and exposure to geopolitical tensions between Washington and Beijing.
Bernstein and Oppenheimer downgraded Nvidia following the latest developments, while Citi lowered its price target.
Citi analysts said a leadership transition could weigh on the stock because of Huang’s central role in the company’s strategy, product development, customer relationships and investor confidence.
Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, which holds Nvidia shares, said investors were increasingly pricing in a scenario in which the company loses its founder.
“The market is starting to price Nvidia without its founder as the likely outcome, not a tail risk,” she said, adding that losing Huang would be a significant blow.
Nvidia Faces Succession Challenge
Huang’s possible departure would create a leadership vacuum at the approximately $4 trillion chipmaker, which he co-founded more than three decades ago.
The 63-year-old executive has no obvious successor and owns approximately 3.6% of Nvidia’s shares. He also maintains an unusually large number of direct reports, reflecting the tight control he exercises over the company.
Bloomberg reported on Wednesday that Nvidia’s board had engaged an external firm to identify potential replacements for Huang.
Rosenberg identified Chief Financial Officer Colette Kress, who has held the position for more than a decade, as a possible interim CEO.
However, she said the bigger challenge would be finding someone capable of sustaining Nvidia’s technological direction and product development strategy.
Prediction market platform Polymarket showed an 88% probability that Huang would resign or be removed before the end of 2026. Ian Buck, who oversees Nvidia’s data centre business, emerged as a leading potential successor.
The leadership crisis comes just days before Nvidia is scheduled to release its quarterly financial results on November 17.
Second Affair Allegation
The controversy expanded on Wednesday after The New York Times reported that Huang had also been involved in an extramarital relationship with Kimberly Powell, Nvidia’s vice president of healthcare, who reportedly worked under him.
The newspaper cited five people who had worked at the company.
When contacted by phone and asked about his relationship with Powell, Huang reportedly responded: “I don’t think you should be talking to me directly,” before ending the call.
Nvidia and Powell did not immediately respond to requests for comment, while Reuters said it could not independently verify the report.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and accepted responsibility, although he did not provide details about the relationship.
US President Donald Trump said he spoke with Huang on Monday and that the Nvidia CEO told him he did not know the woman linked to him was allegedly a spy.
Huang is considered one of Trump’s closest allies in Silicon Valley, with their relationship dating back at least to 2025.
