Nvidia CEO Jensen Huang Faces Possible Ouster as Board Meets Amid Second Affair Allegation

Nvidia's board of directors convened late on Wednesday, 11 November, to weigh removing chief executive Jensen Huang following explosive allegations of a second extramarital affair involving a direct subordinate.

The reported discussions at the US chipmaker followed concerns about corporate governance, national security and Huang's personal conduct, sending Nvidia shares sharply lower.

According to Reuters, independent directors are assessing whether the 63-year-old co-founder should remain at the helm of the semiconductor giant.

The developments came after the board announced an independent investigation on Sunday into reports that Huang had been the target of a foreign intelligence effort. Although the board initially expressed confidence in his leadership, fresh reporting about an alleged relationship with a senior Nvidia executive raised further questions about his future.

Nvidia Board Weighs Jensen Huang's Future as Shares Tumble

Nvidia had not publicly confirmed a decision to remove him. Under Nvidia's bylaws, Huang can be removed with or without cause by a majority vote of directors.

The company has an 11-member board, with all but Huang considered independent, leaving his position vulnerable despite decades of leadership.

Investors reacted swiftly. Nvidia shares fell more than 8% in extended trading following reports of a possible dismissal, while Nasdaq futures declined 1%.

CoreWeave and Micron also suffered losses in after-hours trading, suggesting uncertainty was spreading beyond Nvidia itself. However, other chipmakers, including AMD and Broadcom, recorded gains.

The controversy has raised concerns about the company's governance and its exposure to US-China technology restrictions. Reports that American intelligence officials were investigating a woman suspected of facilitating Nvidia chip shipments to Chinese companies have added to pressure from lawmakers demanding answers.

Removing Huang would create another problem. The 63-year-old co-founder has led Nvidia for more than three decades, with no obvious successor. Chief financial officer Colette Kress has been suggested by an investment analyst as a possible interim leader, although no appointment has been announced.

The uncertainty also comes ahead of Nvidia's quarterly financial results, scheduled for 17 November, when investors expect further clarity about the company's financial outlook.

Jensen Huang Accused of Second Affair With Nvidia Executive Kimberly Powell

The latest allegation concerns Kimberly Powell, Nvidia's vice president of healthcare, who reportedly had an extramarital relationship with Huang while reporting directly to him.

The New York Times reported the alleged relationship, citing five people who worked at Nvidia. Reuters said it could not independently verify the claims. Neither Powell nor Nvidia immediately responded to requests for comment.

When contacted about Powell on Wednesday, Huang reportedly replied, 'I don't think you should be talking to me directly,' before ending the call, according to The New York Times.

His response did not confirm or deny the alleged second affair. The accusation followed reports about Huang's alleged relationship with Alice Huang, a businesswoman whom US intelligence officials have reportedly investigated over suspected links to Chinese intelligence.

She has also been linked in reports to allegations involving Nvidia chip shipments to Chinese companies.

In a message published by Nvidia, Huang acknowledged being unfaithful to his wife. 'I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did,' he wrote.

Huang has pledged to cooperate fully with Nvidia's investigation. On 10 November, the company's independent directors announced that they had retained former acting US Attorney Joon H. Kim and his law firm, Wachtell, Lipton, Rosen & Katz, to assist with the inquiry.

Meanwhile, lawmakers on Capitol Hill are pressing Huang for a closed-door security briefing and have raised the prospect of issuing a formal congressional subpoena.