Nvidia Stock Sinks Nearly 10% on Second Jensen Huang Affair Report: Is He Out as CEO?
Nvidia shares plunged 9.63% in after-hours trading on Wednesday to $157.00 after The New York Times reported CEO Jensen Huang had a second extramarital affair.
The stock had closed the regular session up 2.92% at $173.73 before the news broke. The Times reported Huang had a relationship with Kimberly Powell, Nvidia's vice president of health care who reports directly to him. Both individuals are married to other people, according to five sources familiar with the matter.
Huang reportedly hung up when contacted by The New York Times, and Nvidia declined to comment on the allegations. Nvidia's code of conduct explicitly asks employees to avoid conflicts of interest, including those arising from personal relationships.
Board Considers Removal
Minutes after the Times report, The Wall Street Journal claimed Nvidia's board is preparing to remove Huang, citing people familiar with the matter. The board could meet as soon as Thursday to decide his future, though no final decision has been made.
There is no succession plan.
Leadership Uncertainty
The situation marks a sharp reversal from just last week when the board expressed "confidence in Jensen and his leadership team" on November 8 as it opened a probe into his first affair. That relationship, which Huang admitted to on Sunday, involved Alice Huang, a Megaspeed executive identified by US officials as a Chinese intelligence asset.
Nvidia has not disclosed a succession plan, though analysts have named CFO Colette Kress as a possible interim leader. Huang co-founded the company in 1993. Jim Cramer warned investors to prepare for a future without Huang as CEO. Nvidia reports third-quarter earnings on November 17, and as one of the largest stocks in the S&P 500, its movements affect index funds and retirement accounts across the US.
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