As board weighs CEO Jensen Huang’s ‘exit’, Nvidia shares fall 8% after report of second affair

Nvidia shares fell 8 per cent in after-hours trading on Wednesday after reports that the company’s board was preparing to discuss the future of CEO Jensen Huang amid allegations of two extramarital relationships, including one involving a businesswoman suspected by US intelligence officials of having links to Chinese intelligence services.After-hours trading takes place after the regular market session closes and is not necessarily representative of how a stock will perform when the market reopens.Nvidia’s stock has come under significant pressure amid the controversy, with the company losing around $430 billion in market value over Monday and Tuesday as its shares fell a combined 9.5%. However, Nvidia shares had recovered 2.9% during Wednesday’s regular trading session before plunging more than 8% after the closing bell.This comes as the Wall Street Journal, citing people familiar with the matter, reported that Nvidia’s board was preparing to meet as early as Thursday to discuss Huang’s future. CBS News reporter also said in a post on X that the board was preparing to discuss the CEO’s position, with the Trump administration aware of plans to remove him. Various reports have also claimed that the board is reportedly looking for a temporary chief to take over from Huang.The developments came after the New York Times reported another alleged relationship between Huang and Nvidia vice president Kimberly Powell, who reports directly to him. The newspaper, citing five people who worked at the company, said the relationship had not been previously reported. The report also raised questions about Nvidia’s workplace policies, which ask employees to avoid situations involving potential conflicts of interest, including personal relationships.Read more: Trump administration aware of plans to oust Nvidia CEO Jensen Huang – reportHuang, who acknowledged one of the reported relationships in a letter to employees on Sunday, admitted being unfaithful to his wife and apologised for violating their trust. Nvidia’s board has reportedly launched an investigation into the matter, led by law firm Wachtell, Lipton, Rosen & Katz.Huang “was the one who led the marvelous rise of Nvidia,” said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts., as quoted by Reuters. “I guess the question would be, can someone step up if Jensen has to resign or is forced out?”Meanwhile, on Wall Street, major US stock indexes ended higher on Wednesday, supported by gains in technology shares after upbeat results from CoreWeave lifted optimism around AI-related investments. The S&P 500 rose 1.31% to 7,619.38, the Nasdaq Composite gained 1.60% to 25,466.19, while the Dow Jones Industrial Average advanced 0.49% to 52,486.49. The S&P 500 technology sector climbed 2.7%.