Nvidia’s board is preparing to consider the future of CEO Jensen Huang following reports of two alleged extramarital relationships, one of which has reportedly drawn scrutiny over suspected links to Chinese intelligence, The Wall Street Journal reported Wednesday, citing people familiar with the matter.
The board could meet as early as Wednesday to discuss Huang’s position, according to the report. His potential departure would create significant uncertainty at the $4 trillion chipmaker, which he co-founded more than three decades ago and transformed into the world’s leading supplier of artificial intelligence processors.
Nvidia shares fell approximately 8% in after-hours trading Wednesday. The latest decline comes amid growing investor concerns over the controversy, with the company’s market capitalization reportedly shrinking by around $600 billion this week following the announcement of a board investigation.
The developments have raised questions about the company’s leadership succession, particularly given Huang’s central role in Nvidia’s growth and strategy.
” H uang being removed immediately could be challenging for Nvidia since it does not have a succession plan in place … If Mr. Huang broke the law or violated company policies, the board is likely to act as soon as they have proof,” Gil Luria, head of technology research at D.A. Davidson, said.
Earlier Wednesday, The New York Times reported that Huang had an alleged extramarital relationship with a senior Nvidia executive who reported directly to him. The report identified the executive as Kimberly Powell, the company’s vice president of healthcare, citing five former employees familiar with the matter.
When contacted by the newspaper 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. Reuters said it could not independently verify the reports.
The latest revelations add to an unfolding controversy surrounding Huang’s reported relationship with Alice Huang, a Chinese businesswoman whom US intelligence officials have reportedly linked to efforts to facilitate shipments of Nvidia chips to Chinese companies.
In an internal memo circulated to employees Sunday, Huang acknowledged being unfaithful to his wife and said he took “full responsibility.” However, he did not disclose details about the relationships.
On the same day, Nvidia’s board initiated an investigation into whether the CEO had been targeted as part of a foreign intelligence operation. The inquiry is being overseen by independent directors with the assistance of external legal counsel. At the time, the board expressed confidence in Huang’s leadership.
The controversy has also attracted political attention in Washington. US President Donald Trump said he had not discussed the allegations with Huang but voiced support for the Nvidia chief, describing him as “an honorable guy” who had “done an amazing job for our country.”
Huang could also face congressional scrutiny. He may be issued a subpoena if he does not respond to a request to provide a closed-door briefing concerning allegations about his relationship with the Chinese businesswoman and claims that she passed information to Beijing.
Huang co-founded Nvidia in 1993 alongside Curtis Priem and Chris Malachowsky. The company initially built its reputation through graphics processing units (GPUs) designed for computer gaming.
Its subsequent development of CUDA software expanded the capabilities of its processors beyond graphics, enabling them to handle general-purpose computing tasks and eventually powering the artificial intelligence revolution.
Today, Nvidia occupies a central position in the global AI industry, with its chips underpinning much of the infrastructure driving the technology boom. The company has also become a key player in the intensifying technological rivalry between the United States and China.
Any leadership upheaval at the company could therefore have implications extending well beyond its boardroom and financial markets.
