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Nvidia's Board Is Reportedly Preparing to Oust Jensen Huang as Spy-Scandal Fallout Deepens
Shares plunged more than 8% after hours on reports the board is moving to remove its founder-CEO, as fallout from his admitted affair with a woman U.S. officials suspect of ties to Chinese intelligence wipes out more than $450 billion in market value.
Nvidia shares fell sharply in after-hours trading Wednesday, dropping more than 8% to around $159.51, after the Wall Street Journal reported the chipmaker's board is preparing to remove founder and CEO Jensen Huang. Reuters independently confirmed the board met late Wednesday to determine Huang's future, according to reporting from Forbes.
The board opened an independent investigation on Nov. 8 after reports surfaced that Huang had been the target of a foreign intelligence effort, the same day Huang admitted to an extramarital affair in a message to employees. The woman involved is suspected by U.S. officials of working as an operative for Chinese intelligence, according to NBC News. The board has hired outside counsel to determine whether corporate secrets or national security were compromised.
A $450 billion slide
Nvidia's market value has sunk more than $450 billion since the probe was announced four days ago, as the AI-chip giant's stock has become a bellwether for the broader tech trade. The sell-off rippled into Asian markets overnight, dragging down chip stocks across the region, according to Al Jazeera. Bloomberg has reported separately that the board has been working with an outside search firm to identify potential successors and is weighing an interim CEO if Huang is removed.
WE HAVE NO REASON TO BELIEVE NATIONAL SECURITY OR NVIDIA SECRETS WERE COMPROMISED.
That line, from the board's Nov. 8 statement, now reads as an opening position rather than a finding — the investigation has not concluded, and no violation of company policy has been established. President Trump has publicly defended Huang, calling him “a fine person” and suggesting he should remain in charge, a notable intervention in a Silicon Valley boardroom fight.
Nvidia reports third-quarter earnings on Nov. 17, a deadline that could force the board's hand one way or another. Corporate filings show Nvidia's 11-member board can remove Huang as CEO with a simple majority vote, without needing to prove misconduct, even as the company's own statement maintains confidence in his leadership team. Nvidia had not issued a new statement as of Wednesday night.