Nvidia (NVDA) Shares Drop Over 9% After CEO Jensen Huang Ouster Reports

Shares of Nvidia (NVDA) fell more than 9% in after-hours trading following reports from The Wall Street Journal that the company's board is preparing to oust CEO Jensen Huang. This news came shortly after The New York Times reported that Huang had an extramarital relationship with another Nvidia executive, Kimberly Powell, the company's vice president of healthcare.

Nvidia's board is expected to meet as soon as Wednesday to decide Huang's future at the company. The alleged affair reportedly involved incidents recorded in March in San Jose, California. Huang recently admitted to being unfaithful, expressing regret in a message to Nvidia staff. Meanwhile, an independent investigation has been launched concerning spying allegations linked to Huang’s previous affair with a woman believed by U.S. intelligence to be a Chinese spy. Nvidia engaged the law firm Wachtell, Lipton, Rosen & Katz to investigate these claims.

Most of Huang's shares are co-owned with his wife Lori Huang, held in trusts totaling about 800 million shares, while Huang personally owns about 70 million shares with limited control over the company. The affair rumors involving Powell, who manages Nvidia's healthcare business — a minor part of Nvidia's revenue compared to AI and GPU segments — had circulated previously due to her unconventional background in healthcare.

This development matters for investors because leadership instability in a major tech company like Nvidia could affect strategic decisions and stock valuation. The upcoming board meeting and investigation outcomes will be critical for assessing Nvidia’s corporate governance and future performance.