Nvidia’s board is preparing to meet as soon as today to determine Jensen Huang’s future, WSJ reported.
- Nvidia’s board is preparing for an emergency meeting to oust founder and CEO Jensen Huang following multiple misconduct revelations.
- Investigations center on an unreported relationship with Vice President of Health Care Kimberly Powell and past contact with a suspected Chinese intelligence operative.
- Nvidia shares fell sharply in after-hours trading.
Nvidia Corp.(NVDA) share price dropped 5% after-hours after the chipmaker’s board is preparing to remove Chief Executive Officer Jensen Huang following internal and federal scrutiny over extramarital affairs, including one with an executive reporting to him and another with an alleged Chinese intelligence asset.
The board is scheduled to meet as soon as today to decide the fate of the 63-year-old founder, WSJ reported, whose corporate leadership has come under immediate threat after fresh details surfaced regarding company employee policy violations and potential national security risks.
Unreported Relationship With Direct Subordinate
The decision by the board follows revelations that Huang engaged in a workplace relationship with Kimberly Powell, 48, Nvidia’s vice president of health care, according to an exclusive report by The New York Times (NYT).
Five former employees confirmed the relationship to NYT, which directly violates Nvidia’s corporate code of conduct mandating that staff avoid conflicts of interest and personal relationships between managers and subordinates.
NYT’s report claimed that Huang and Powell were observed displaying physical affection at a San Jose hotel during Nvidia’s annual GTC developer conference in March. According to sources familiar with the matter, Nvidia security personnel intervened when a bystander recorded the interaction on a mobile device, offering the individual a non-disclosure agreement.
“Boards are risk averse institutions comprised of individuals who are obsessed about being sued,” Gary Black, Managing Partner at The Future Fund LLC wrote in a post on X. “I got 10:1 pushback this could never happen but it looks like it is happening. Positive for AMD and Broadcom (AVGO).”
Meanwhile, market strategist Shay Baloor in a post on X highlighted that the market odds of Jensen Huang leaving Nvidia as CEO before 2028 surged to 64% on Kalshi, following reports of a second alleged affair.
Congressional Oversight
The exposure of Huang’s internal workplace affair comes amid mounting pressure over his separate linkage to an executive identified by U.S. intelligence as an asset for China’s Ministry of State Security. The woman, known as Alice Huang, was involved with Huang prior to his public acknowledgment of infidelity in a company-wide memo.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did,” Huang wrote to Nvidia staff, expressing regret for his actions.
The board retained the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into the security and governance implications of the interactions.
Concurrently, leaders of three U.S. House of Representatives committees have called for Huang to testify in a closed-door briefing regarding potential foreign influence and export violations involving Chinese technology trade. Chinese officials have denied all espionage assertions.
Huang co-founded Nvidia in 1993, building it into the global leader in artificial intelligence infrastructure and graphics computing.
Retail Investors Positive On Nvidia Financials
Retail sentiment on Stocktwits towards Nvidia remained in the ‘extremely bullish’ zone with ‘extremely high’ user message volumes.
A user highlighted that Nvidia remains a top tech firm and Jensen Huang’s personal life would not affect the stock.
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NVDA stock has lost 7.5% year-to-date.
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