Nvidia Shares Plunge as Board Weighs CEO Future Amid Personal Scandals

Nvidia shares plunged more than 8% to $158.78 in after-hours trading following a Wall Street Journal report that the company was preparing to oust CEO Jensen Huang. The stock drop followed a regular trading session where shares had rebounded 2.92% to close at $173.73, recovering some ground after sharp losses over the previous two sessions. US stock futures also declined, with Nasdaq futures sliding 1%, while Micron shares fell nearly 2% and CoreWeave tumbled 6% in after-hours trading. In contrast, rival chipmakers AMD and Broadcom gained 4% and 3% respectively.

The Controversy

According to a Wall Street Journal report, Nvidia's board is considering removing CEO Jensen Huang, with directors preparing to discuss his future as early as Wednesday. The board faced a succession crisis starting Sunday when Huang admitted that he had an affair with Alice Huang, a woman reportedly suspected of spying for China, according to Business Standard. The New York Times reported that Jensen Huang had an extramarital relationship with Kimberly Powell, Nvidia's vice president of healthcare, citing five former or current employees. Powell oversees the company's global healthcare business, including accelerated computing and artificial intelligence platforms. Reports also indicated that US intelligence authorities investigated Alice Huang over alleged help in shipping Nvidia chips to Chinese companies, prompting the company's board to launch an internal probe and hire external legal advisers while lawmakers pushed for stricter semiconductor export rules.

Market Impact

Nvidia shares have dropped 9.48% over the past week and 24% in the last month, with declines of 22.47% over three months and 21.31% over six months. On a one-year basis, the stock is down 10.36% due to shifting investor sentiment. Despite this recent pressure, the company holds strong long-term gains, surging 257.5% over three years and 472.81% over five years during the artificial intelligence boom.

Context

Corporate governance and leadership stability play a major role in how public technology companies are valued by global investors. When top executives face sudden personal and regulatory scrutiny, markets often react swiftly because leadership continuity is tied closely to future business strategy.