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Nvidia’s board of directors met late Wednesday to consider removing Jensen Huang as chief executive, according to a source familiar with the matter. The meeting marks a dramatic reversal from just days earlier, when the board publicly expressed confidence in Huang’s leadership. The potential removal of Huang, who co-founded Nvidia more than three decades ago, has sent shockwaves through financial markets and raised serious questions about the future of the world’s leading AI chip company.
Board Moves to Remove Huang
Under Nvidia’s bylaws, the board can remove Huang “with or without cause” by a majority vote of its 11 directors. All directors except Huang are considered independent. Nvidia did not immediately respond to requests for comment on the board meeting.
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Nvidia’s stock fell more than 8% in extended trading after the Wall Street Journal first reported the company was preparing to fire Huang. If those losses hold, Nvidia will have shed roughly $600 billion in market value since the board announced its investigation into his personal conduct.
The crisis began after US intelligence reportedly investigated Alice Huang, a businesswoman alleged to be a Chinese spy, for facilitating shipments of Nvidia chips to Chinese firms. That revelation triggered a wave of scrutiny over Nvidia’s governance, prompted the board to hire outside legal counsel, and pushed lawmakers to call for tighter chip export restrictions to China.
Second Affair Reported
Earlier Wednesday, the New York Times reported that Huang also had an extramarital affair with Kimberly Powell, Nvidia’s vice president of healthcare, who reported directly to him. Five former company employees confirmed the relationship to the Times. When a reporter reached Huang by phone and asked about Powell, he said, “I don’t think you should be talking to me directly,” and then hung up. Nvidia and Powell did not immediately comment. Reuters could not independently verify the report.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and accepted “full responsibility,” though he offered no further details. US President Donald Trump voiced support for Huang but said he had not discussed the allegations directly with him. Huang also faces a potential congressional subpoena if he fails to provide a closed-door briefing about his alleged relationship with the suspected Chinese spy.
Leadership Vacuum and Market Reaction
Huang, 63, has no clear successor. He owns approximately 3.6% of Nvidia’s stock and oversees dozens of direct reports. Bloomberg reported Wednesday that the board has engaged an outside firm to identify potential replacements. Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, said Chief Financial Officer Colette Kress would be the natural interim choice. However, she noted the bigger challenge would be finding someone to lead Nvidia’s long-term technology strategy. “Losing Jensen would be a real blow,” Rosenberg said.
On prediction market platform Polymarket, the odds of Huang resigning or being removed by year-end rose sharply to 88%. Meanwhile, US stock futures declined, with Nasdaq futures down 1%. Rival chipmakers AMD and Broadcom rose 4% and 3% respectively in after-hours trading. Separately, Axios reported that Commerce Secretary Howard Lutnick stalled a Trump administration crackdown on companies suspected of diverting Nvidia chips to China. The White House did not immediately respond to that report.
