Jensen Huang Faces Possible Nvidia Exit Amid Affair Scandal, as Shares Plunge
Nvidia’s board of Directors gathered to decide whether co-founder Jensen Huang should keep running the company, in a board meeting on Wednesday, 11 November. Only days earlier, the same board had publicly backed him amid his rumored affair with an alleged Chinese Spy. That show of confidence now feels like a distant memory. The sudden reversal has left investors, employees and rivals wondering what comes next.
The trouble began when Huang admitted to his affair in a Sunday email to staff. He said his actions had hurt his wife, Lori, and their children. Huang also says he never knew that businesswoman Alice Huang, an executive at Singapore-based Megaspeed (company that runs data centers across South East Asia and is the biggest buyer of Nvidia chips in the region), is accused of working for Chinese intelligence. Beijing rejects the claim and calls it a smear. Meanwhile, the Nvidia stock has taken a beating, with more than half a trillion dollars in market value wiped out.
A Second Affair Claim Lands as the Board Weighs Huang’s Fate
Another blow arrived late on Wednesday. A fresh allegation says Huang also had a relationship with Kimberly Powell, Nvidia’s president of healthcare. The two were allegedly filmed being affectionate at a hotel during a March company conference. However, this claim hasn’t been verified yet. Nvidia’s own code of conduct urges employees to avoid personal relationships that create conflicts.
The board holds real power in this situation. Company bylaws allow directors to remove Huang, with or without cause, by a simple majority vote. Nvidia has 11 directors, and every one of them except Huang is considered independent. In the meantime, the law firm Wachtell, Lipton, Rosen & Katz is running an investigation. The firm told Huang to keep leading the company while that review continues. Huang co-founded Nvidia in 1993 and owns more than 870m shares, roughly 3.6% of the business.
Wall Street Turns Cautious While Washington Raises Questions
Wall Street has rarely turned on Nvidia, yet cracks are now showing. Baird and Bernstein Research have downgraded the stock, and Morgan Stanley dropped it from its Top Pick list. Bernstein analyst Stacy Rasgon halved his price target and hinted that more problems may surface. Still, most brokerages keep a buy rating on the shares. Meanwhile, Rival AMD has climbed more than 21% in five days. Nvidia also reports earnings next week, and no obvious successor has emerged. Politics adds another layer of pressure. President Donald Trump has called Huang an honorable man and Elon Musk has also voiced support. However, Democratic Senators Elizabeth Warren and Chris Coons want the administration to preserve records on Nvidia’s chip exports to China.
House Republicans have asked Huang for a closed-door briefing on November 18. Rep. Brian Mast is prepared to subpoena Huang if he does not respond. Beijing rejects the spying claims, and Taiwan has revoked Alice Huang’s entry permit. Ultimately, this scandal reaches well beyond one executive’s private life. Nvidia’s chips power much of the global AI boom, so a leadership shake-up echoes across the entire industry. The board now has to prove it can act independently without rattling partners who trusted Huang. In turn, Investors and governments are learning how risky it can be to lean on one visionary founder.
Web Resources on Nvidia CEO Removal
1. Wall Street Journal : Nvidia Is Preparing to Oust CEO Jensen Huang.
2. Reuters : Nvidia board meets to decide CEO Huang’s future, source says.
3. ABC News : Nvidia board reportedly preparing to oust CEO Jensen Huang after alleged affairs.
4. Guardian : Nvidia board reportedly deciding whether to oust CEO Jensen Huang as stock price plunges.
5. BBC : Nvidia shares plunge as board reportedly weighs ousting CEO Jensen Huang after second affair allegation.