Nvidia board moves to remove CEO Jensen Huang as shares slump over 7%

Nvidia's board is moving to remove CEO Jensen Huang, prompting the stock to tumble more than 7% in after‑hours trade on Wednesday. The Wall Street Journal broke the story, and minutes later The New York Times reported that Huang had an extramarital relationship with another senior executive. The alleged partner is Kimberly Powell, Nvidia's vice president of health care, who oversees the company’s global healthcare hardware and software platforms for AI‑driven imaging, drug discovery and analytics. Video footage captured the two being affectionate at a San Jose hotel in March, according to the Times report. Nvidia did not immediately comment, and crisis‑PR firm Heller, which Huang reportedly hired last year, also stayed silent. The board has launched an independent investigation and hired law firm Wachtell, Lipton, Rosen & Katz to probe the spying allegations linked to a separate affair. Days earlier Huang admitted to an affair with Alice Huang, a woman U.S. intelligence believes works for China’s Ministry of State Security, as reported by the Financial Times and the New York Times. In a staff message, Huang said, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry." Rumors about a relationship with Powell have lingered, fueled by her lack of a health‑science background, a former employee said. Nvidia’s stock is down 7% this week, on track for a sixth consecutive weekly decline, reflecting worries about the sustainability of the AI build‑out and recent political shifts that could tighten data‑center regulations.

Context

Nvidia is a key supplier of graphics and AI chips, so leadership turmoil and espionage concerns can ripple through the broader technology and investment landscape.