Nvidia Stock Declines 8% in After-Hours Trading Amid Reports of Jensen Huang’s Potential Departure

Nvidia shares dropped 8% in after-hours trading on Wednesday following reports that the company’s board is set to discuss CEO Jensen Huang’s future. This comes amid allegations of two extramarital relationships, including one with a businesswoman suspected of ties to Chinese intelligence. The Wall Street Journal reported that the board may meet as early as Thursday to address Huang’s position.

The discussions were prompted by a New York Times report detailing another alleged relationship between Huang and Nvidia vice president Kimberly Powell. This relationship had not been previously disclosed and raises concerns about Nvidia’s workplace policies, which advise employees to avoid potential conflicts of interest, including personal relationships. CBS News also reported that the Trump administration is aware of the board’s plans regarding Huang.

Huang acknowledged one of the relationships in a letter to employees, admitting to infidelity and apologizing for violating trust. Nvidia’s board has initiated an investigation led by the law firm Wachtell, Lipton, Rosen & Katz. Investor sentiment has been affected; Nvidia shares had gained 2.9% during the regular trading session before the after-hours decline.