Nvidia shares plummeted over 8% in extended trading following reports that board members are discussing the dismissal of chief executive Jensen Huang. The move stems from personal allegations involving an alleged extramarital relationship with Kimberly Powell, the company's vice president of healthcare, who was reportedly seen with Huang at a San Jose hotel. These management concerns arrive alongside prior media reports connecting Huang to Alice Huang, a person suspected by U.S. intelligence of maintaining ties to China's Ministry of State Security.
Key points
Jensen Huang faces imminent board discussions regarding his potential dismissal from the…: Jensen Huang faces imminent board discussions regarding his potential dismissal from the helm of Nvidia.
Scrutiny on company leadership extends to separate reports linking Huang to an individual…: Scrutiny on company leadership extends to separate reports linking Huang to an individual suspected of Chinese intelligence ties.
Uncertainty at Nvidia is redistributing momentum across the semiconductor sector as rival…: Uncertainty at Nvidia is redistributing momentum across the semiconductor sector as rival chipmakers post notable stock gains.
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Nvidia stock plunged more than 8% to $158.78 in after-hours trading following a Wall Street Journal report that the company was preparing to dismiss CEO Jensen Huang.
Nvidia shares rebounded 2.92% to close at $173.73 during Wednesday's regular trading session, recovering some of their losses after suffering sharp declines in the previous two sessions.
Meanwhile, US stock futures declined, with Nasdaq futures sliding 1%. In after-hours trading, Micron shares fell nearly 2%, while CoreWeave tumbled 6%. In contrast, rival chipmakers AMD and Broadcom gained 4% and 3%, respectively.
According to a Wall Street Journal report, Nvidia's board is considering removing CEO Jensen Huang from his position, with directors reportedly preparing to discuss his future at the company as early as Wednesday.
The development emerged shortly after The New York Times published a report alleging that Huang had an extramarital relationship with another Nvidia executive. According to the Journal, the company's board was preparing to convene to deliberate on the CEO's future.
The alleged relationship was reportedly with Kimberly Powell, Nvidia's vice president of healthcare. According to her official company biography,…
The prospective availability of Nvidia's top leadership comes as Jensen Huang's standing at the semiconductor giant faces significant uncertainty. Elon Musk publicly expressed enthusiasm about the potential recruit, signaling a major talent acquisition interest if the executive departs. This high-profile development follows reports detailing Huang's involvement in personal controversies that have destabilized his position at Nvidia.
The unexpected show of support from Tesla's chief executive comes as the semiconductor giant's board prepares to evaluate Jensen Huang's executive standing. The leadership crisis was triggered by revelations of Huang's extramarital relationship with an executive linked to Chinese intelligence, spurring sharp market losses and national security concerns. Lawmakers are now mounting pressure on the long-time tech leader to relinquish his post.
Reports that Nvidia's board is preparing to oust long-time leader Jensen Huang over personal misconduct have triggered a steep selloff threatening the chipmaker's $4 trillion market valuation. Wall Street analysts reacted swiftly by cutting ratings and price targets due to severe key-person risk ahead of the company's November 17 earnings release. The leadership crisis has quickly spilled over into the broader technology sector, dragging down shares of allied artificial intelligence infrastructure and hardware par…