Jensen Huang ouster: Nvidia board prepares to remove CEO, WSJ says, as shares fall more than 8%
The Wall Street Journal says Nvidia's board is preparing to remove CEO Jensen Huang after he admitted an affair, while an independent investigation examines a possible foreign intelligence link.
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A Jensen Huang ouster moved closer on Wednesday, when the Wall Street Journal reported that Nvidia’s board is preparing to remove its chief executive. Reuters reported that the board could meet as soon as Wednesday to decide Huang’s future, citing people familiar with the matter. Nvidia shares fell more than 8% to $159.51 in after-hours trading, CBS News reported.
What the reports say about the Nvidia CEO
The Wall Street Journal was the first to report that board members were preparing to remove Huang, CBS News said. Earlier the same day, the New York Times reported that Huang had an extramarital affair with a company executive who reported to him, according to Reuters. CNBC said the Times report landed minutes before the Journal’s.
That is the second relationship to surface this week. Huang, who co-founded Nvidia in 1993, admitted to an affair days earlier. In a message to staff on Sunday he wrote: “There is no excuse for what I did.”
Key numbers on Nvidia shares
- $159.51: Nvidia’s after-hours share price after the drop of more than 8%, per CBS News.
- $450 billion: the loss in market value since Nvidia announced its probe on 8 November, according to CBS News.
- 1993: the year Huang co-founded Nvidia.
Nvidia board investigation and the spying question
Nvidia’s board has opened an independent investigation and hired the law firm Wachtell, Lipton, Rosen & Katz to look into the spying allegations, CNBC reported. The investigation is examining whether Huang was targeted by a foreign intelligence operation, Reuters said.
In its own statement of 8 November, Nvidia said a committee of independent directors, assisted by outside independent counsel, will oversee the inquiry. The board added that it “has no reason to believe that either national security or NVIDIA secrets were compromised”.
CBS News reported that U.S. intelligence agencies have linked Huang to a Chinese business executive, Alice Huang, who has no relation to him and is suspected of being an asset of China’s Ministry of State Security. Reuters added that U.S. intelligence has said she facilitated shipments of Nvidia chips to Chinese firms. None of the reports reviewed contain a response from Alice Huang.
What happens next for the Jensen Huang ouster
CBS News said the Trump administration is aware of the board’s plans, citing sources. The reports reviewed carry no board decision and no statement from Nvidia on the Journal’s account. Most of Huang’s Nvidia shares are co-owned with his wife, Lori Huang, and are held in trusts, CNBC said. No decision has been announced. The board’s next move, and whether a Jensen Huang ouster follows once it meets as the Journal described, is the next thing to watch.
Nvidia is central to the global AI chip supply, so a change at the top would matter to investors, customers and governments. The board has not announced a decision in the reports reviewed, and the investigation into possible foreign targeting is still open. The next board meeting is the thing to watch.