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Nvidia Board Moves to Oust CEO Jensen Huang After Affair Reports, Shares Fall 8%
Nvidia's board is reportedly preparing to remove CEO Jensen Huang after revelations of a second extramarital affair, sending shares down 8% in after-hours trading and rattling the AI sector ahead of Anthropic's market debut.
Nvidia shares dropped roughly 8% in after-hours trading Wednesday following reports that the company's board is preparing to oust CEO Jensen Huang, a stunning turn for the chipmaker that has become one of the most valuable companies in the world and a bellwether for the artificial intelligence boom.
The Wall Street Journal first reported that Nvidia's board is moving to remove Huang. The news came hours after The New York Times reported that the billionaire executive had engaged in a second extramarital affair, this time with a subordinate at the company. Bloomberg subsequently reported that the board is working with an outside firm to identify a replacement chief executive.
Because the reports surfaced after the closing bell, the 8% decline reflects thin after-hours trading, where prices can swing more sharply than during the regular session. Thursday's market open is expected to offer a clearer picture of how investors are pricing a potential leadership change at the Santa Clara-based semiconductor giant.
The turmoil follows a turbulent week for Huang. Nvidia's stock briefly fell earlier this week after Huang admitted to employees on Sunday that he had had an affair with a woman suspected by U.S. intelligence officials of spying for China. The shares had been rebounding two days later until the second affair revelation was published.
The developments carry significant implications for the Bay Area and beyond. Nvidia's explosive growth has made it a pillar of the regional economy and a major driver of the stock market's AI-fueled rally. A leadership vacuum at the company could unsettle investors already anxious about the durability of the AI trade, and the uncertainty arrives just ahead of Anthropic's highly anticipated public debut.
The board's reported move to bring in an outside firm to search for a new CEO signals that directors are preparing for a swift transition rather than a prolonged internal review. Nvidia has not publicly commented on the reports.
For a company whose identity has been closely tied to its charismatic founder, the prospect of Huang's departure raises questions about strategic continuity at a time when Nvidia's chips underpin much of the global AI infrastructure buildout. How the board handles the transition â and how markets respond at Thursday's open â will be closely watched by investors, employees, and the broader tech community.