Nvidia shares plunged more than 8% in after-hours trading on Wednesday after reports emerged that the chipmaker’s board of directors was preparing to remove longtime CEO Jensen Huang amid an ongoing investigation into his personal and business ties.
The stock fell to $159.51, extending a sharp decline that has wiped out more than $450 billion in Nvidia’s market value since the company launched its probe into Huang’s conduct on November 8.
The Trump administration is reportedly aware of the board’s plans, according to reports cited by CBS News.
The investigation follows Huang’s admission of an extramarital affair with his wife and children, along with scrutiny of his alleged links to Alice Huang, a Chinese business executive suspected by US intelligence agencies of having ties to China’s Ministry of State Security. Alice Huang is not related to Jensen Huang.
Corporate governance experts have raised concerns that the alleged relationship could violate Nvidia’s code of conduct regarding conflicts of interest. Huang apologised to his family and employees, saying there was no excuse for his actions.
The FBI is also investigating the reported connections, while lawmakers are expected to question Nvidia executives over concerns that advanced AI chips may have reached China through third countries.
Huang co-founded Nvidia in 1993 and remains a prominent figure in the global AI industry. Analysts say his potential departure could create significant leadership uncertainty, with no obvious successor.
US Congress Raises National Security Concerns
US lawmakers have raised national security concerns amid reports that Nvidia CEO Jensen Huang could face removal over an alleged espionage-related controversy.
The concerns centre on Huang’s reported connections with Alice Huang, a Chinese business executive suspected by US intelligence agencies of links to China’s Ministry of State Security.
Lawmakers are expected to question Nvidia executives over whether advanced AI chips were diverted to China through third countries.
The allegations remain under investigation, with no public confirmation that Nvidia technology or confidential information was compromised.
Reports Link Nvidia CEO Jensen Huang to VP Kimberly Powell
According to a New York Times report citing five people who worked at Nvidia, CEO Jensen Huang and the company’s Vice President of Healthcare, Kimberly Powell, were allegedly seen being affectionate at a hotel in San Jose during Nvidia’s annual developer conference in March.
According to the reports, the interaction was captured on video. Powell, 48, joined Nvidia as a director in 2008 and has worked with Huang for more than 18 years.
The report adds that the alleged relationship had been discussed within the company. It also claims Huang’s security personnel approached a bystander who recorded the interaction, and the person was reportedly offered a non-disclosure agreement.
The latest allegations come amid separate scrutiny over Huang’s reported relationship with Chinese businesswoman Alice Huang.
Nvidia’s code of conduct identifies personal relationships as a potential source of workplace conflicts of interest. Huang, Powell and Nvidia have declined to comment on the allegations.
