Nvidia CEO Jensen Huang could be ousted from the chip giant he founded over three decades ago, following reports of a second extramarital affair. The firm's board is reportedly preparing to remove its chief executive after news of a relationship with an employee who reported directly to him, adding to a scandal involving a separate alleged affair.
Nvidia's directors met on Wednesday to discuss Huang's future, though no official decision has been announced. The New York Times reported that Huang had an extramarital relationship with Kimberly Powell, Nvidia's vice president of healthcare, citing five company employees. These allegations follow earlier reports of Huang's involvement with Alice Huang, an executive at Singapore-based Megaspeed, whom US intelligence officials suspect has links to Chinese intelligence.
The escalating situation has impacted global markets, with an estimated $671bn (£510bn) wiped from Nvidia's market value since Sunday, according to AJ Bell. Nvidia shares fell nearly six per cent in pre-market trading on Thursday, and Nasdaq futures slipped 0.9 per cent. Kathleen Brooks, research director at XTB, noted that the lack of a publicly identified successor is exacerbating the sell-off.
Huang, who co-founded Nvidia in 1993, has been its sole chief executive, guiding its transformation into a key player in the global AI boom. His potential departure raises questions about the future of AI investment, as Nvidia accounts for approximately eight per cent of the Nasdaq and seven per cent of the S&P 500. AMD shares climbed nearly four per cent, while Broadcom and Alphabet also gained, as investors considered whether further US restrictions on Nvidia's chip exports to China could benefit rival suppliers.
Colette Kress, Nvidia's chief financial officer, has been mentioned as a possible temporary replacement, while Ian Buck, a senior executive, is a potential internal candidate. Josh Gilbert, market analyst at eToro, suggested Kress would be an obvious choice for stability. The leadership crisis comes days before Nvidia is due to report its third-quarter results on 17 November.