Nvidia CEO Jensen Huang caught in second affair after Chinese spy scandal as chip giant's stocks plummet
Nvidia CEO Jensen Huang has been caught in a second cheating scandal with company vice president Kimberly Powell, as the chip giant's stocks plummet following revelations of his affair with an alleged Chinese spy.
Five employees at Nvidia have come forward alleging CEO Jensen Huang had an extramarital relationship with Kimberly Powell, the company's vice president of healthcare. The alleged affair would have violated Nvidia's code of conduct, which requires employees to avoid situations where personal relationships create conflicts.
The revelation comes as Huang already faces intense scrutiny over his admitted affair with Chinese entrepreneur Alice Huang, who is under investigation for allegedly passing information to Beijing. The embattled CEO confessed in a memo to staff about his relationship with Huang, who has been linked to China's Ministry of State Security.
Stock Market Impact
Following the latest revelations, Nvidia's shares plunged nearly 9% in pre-market trading, wiping $360 billion off its value. This week's losses total $640 billion, or 14% of the company's market capitalization. The stock had already lost billions since news of the affair with the alleged Chinese spy broke.
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Board Action
Nvidia's board is reportedly preparing to oust Huang as CEO, with plans to meet as soon as Wednesday to determine his future with the company. Huang co-founded the chipmaker in 1993 and oversaw its rise as one of the world's most valuable companies.
The board had already launched an investigation into Huang's affair with Alice Huang, led by law firm Wachtell, Lipton, Rosen & Katz. Meanwhile, Republican leaders of three influential House committees have asked Huang to appear for a closed-door briefing on his interactions with the woman.
Security Concerns
The alleged Chinese spy reportedly boasted about her close relationship with Huang as far back as June 2024. US officials have been briefed that Huang was working for Beijing's Ministry of State Security to learn about American-made AI chips and possibly persuade Nvidia to make sophisticated semiconductors available in China.
Separately, Washington is investigating Megaspeed over concerns it may have been involved in smuggling hardware to China. Nvidia had audited the firm last year but records show Megaspeed had imported 50,000 more chips than the company found in its data centers.
Legal Fallout
Amid the scandal, Nvidia and Huang were sued by shareholders who accused them of misleading investors about the affair. The lawsuit claims the scandal caused Nvidia shares to dip 4.3% by market close on Monday, reducing the company's market capitalization by approximately $190 billion.
Nvidia insists it had no knowledge of any investigations into Megaspeed or Alice Huang, stating it has 'no reason to believe that either national security or Nvidia secrets were compromised.' The company said it has launched an internal probe to 'examine all available information,' a move supported by Huang.
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