- Nvidia directors reportedly consider Huang’s removal following allegations of a second relationship.
- Nvidia’s shares fell 9.63% in after-hours trading after the report, despite closing 2.9% higher.
- Elon Musk responded positively to a suggestion that he hire Huang, saying it would be an honor.
Nvidia CEO Jensen Huang faced growing scrutiny after The New York Times on Wednesday reported a second alleged relationship, this time involving a senior executive who reports directly to him. Reports that Nvidia directors were considering his removal added to uncertainty surrounding the chipmaker’s leadership, while its shares reversed earlier gains after the story emerged.
What the Times Reported
- The relationship was with a vice president who is one of roughly 60 people reporting directly to Huang, and who has spent more than 18 years at the company.
- Nvidia declined to comment and has not said whether its board inquiry will cover the new allegation.
The story follows Huang’s admission days earlier that he had been “unfaithful” to his wife. That came after reports of a relationship with a businesswoman whom US investigators suspect of spying for China. China has called the allegations “entirely groundless.”
Nvidia Board Reportedly Considers Huang’s Removal
There were reports late Wednesday that some directors were considering Huang’s removal and had hired an outside firm to identify potential successors. Nvidia’s bylaws allow a majority of its 11 directors to remove the chief executive “with or without cause,” and every director except Huang is independent.
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Shares Slide After the Bell
Nvidia closed Wednesday’s regular session 2.92% higher at $173.73. However, its shares fell sharply in after-hours trading following the report, with Yahoo Finance recording a 9.63% decline to $157.
Washington Takes Notice
House Republicans are pushing for Huang to testify and have issued a subpoena. Lawmakers from both parties are calling for tighter limits on chip exports to China. President Donald Trump has called Huang “an honourable guy,” and told reporters this week that the FBI is also looking into the matter.
Huang, 63, co-founded Nvidia in 1993 and has no obvious successor. Chief financial officer Colette Kress has been floated as a possible interim leader. He is still scheduled to give the keynote at Nvidia’s GTC event in Washington from December 1 to 3.
Market Voices and Musk’s Response
The Kobeissi Letter urged the board not to fire Huang. It argued that no clear replacement exists and cited a study of 187 forced CEO departures at S&P 1500 companies, which it said found that removing outperforming chief executives led to negative long-term stock returns. It called for a special shareholder meeting with an advisory vote.
Separately, ZeroHedge account on X wrote “Elon please hire Jensen,” and Musk replied: “That would be an honor.”
The reports have put renewed attention on Huang’s leadership at Nvidia, with questions surrounding the board’s response and the company’s succession options. While calls for the board to retain him highlight his importance to Nvidia, the company has yet to confirm any decision regarding his position.
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Related: Jensen Huang Admits Affair, Nvidia Board Launches Probe Into Foreign Intelligence Reports
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