Nvidia board considers removing CEO Jensen Huang amid spy scandal
The board of Nvidia has convened to decide whether to oust its chief executive following reports of extramarital affairs, including one with an alleged Chinese spy, which have triggered a significant market sell-off.
By Marina Weber ·
Nvidia’s board of directors met late on Wednesday to evaluate whether to remove Chief Executive Officer Jensen Huang from his position. The urgent session comes after reports emerged detailing two extramarital affairs involving the longtime leader, one of which is linked to an alleged Chinese spy. These revelations have intensified scrutiny over the leadership of the world’s dominant supplier of artificial intelligence chips.
According to a source familiar with the matter, the meeting was designed to determine the future of Huang’s tenure. This development marks a sharp contrast to Sunday’s stance, when the board expressed confidence in Huang and his management team. Under the company’s bylaws, Huang can be dismissed by a majority vote of the directors, with or without cause. The board consists of 11 members, all of whom are considered independent except for Huang.
The uncertainty has already impacted Nvidia’s financial standing. Shares of the company dropped more than 8 percent in extended trading after The Wall Street Journal reported that the firm was preparing to fire its CEO. If these 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 be a Chinese intelligence officer.
US intelligence agencies reportedly probed Alice Huang for facilitating the shipment of Nvidia chips to Chinese firms. This discovery sparked a chain of events that included Wall Street questioning the company’s governance, the board hiring outside counsel, and lawmakers advocating for stricter controls on chip exports to China. Armina Rosenberg, a portfolio manager at Minotaur Capital, noted that the market is now pricing in the possibility of Huang’s departure as a likely outcome rather than a distant risk.
Huang, who is 63 years old, has built the company over three decades into a $4 trillion chipmaker. He currently owns about 3.6 percent of the stock and maintains tight control with dozens of direct reports. Bloomberg reported that the board is working with an outside firm to identify potential replacements. While Chief Financial Officer Colette Kress is seen as a natural interim choice, analysts remain uncertain about who will lead the company’s long-term technology roadmap.
Prediction markets have reacted swiftly to the turmoil. Odds on Polymarket shifted to show an 88 percent probability that Huang will resign or be removed by the end of the year. Ian Buck, who oversees the data center business, is currently favored as a potential successor. This leadership uncertainty arrives just days before Nvidia is scheduled to release its quarterly financial results on November 17.
Earlier in the week, The New York Times reported that Huang also had an affair with Kimberly Powell, the company’s vice president of healthcare. When contacted by phone regarding the relationship, Huang stated, “I don’t think you should be talking to me directly,” before hanging up. Neither Nvidia nor Powell immediately responded to requests for comment, and Reuters could not independently verify the report.
The broader market has felt the ripple effects of the scandal. US stock futures declined, with Nasdaq futures down 1 percent. Micron and CoreWeave saw drops in after-hours trading, while rivals AMD and Broadcom experienced gains. In Asia, Samsung Electronics rose slightly, whereas SK Hynix dipped. Analysts warned that while demand for Nvidia’s chips may remain strong in the short term, the companies financed by Nvidia for data center construction could face challenges if the sector slows.
In a memo to employees on Sunday, Huang acknowledged his infidelity and accepted full responsibility, though he did not provide specific details about the relationship. US President Donald Trump, a close ally of Huang, voiced support for the CEO despite saying he had not yet discussed the allegations with him. Huang may face a congressional subpoena if he does not provide a closed-door briefing on the spy allegations.
Additionally, Axios reported that US Commerce Secretary Howard Lutnick had stalled a proposed crackdown by the Trump administration on companies suspected of diverting Nvidia chips to China. The White House and Lutnick’s spokesperson did not immediately respond to requests for comment regarding these reports.
