The board of Nvidia is considering whether to remove long-serving chief executive Jensen Huang, according to multiple US media reports, after revelations of extramarital affairs sent the chipmaker’s shares plunging and raised governance concerns at one of the world’s most valuable companies.
Nvidia stock has lost hundreds of billions of dollars in market value since the scandal emerged. Shares fell sharply in after-hours trading, with the company — the world’s second-most valuable after Apple and a central player in the artificial intelligence boom — facing rare brokerage downgrades as investors reassess key-person risk.
Huang, who co-founded Nvidia in 1993 and has led it for more than three decades, admitted earlier this week to being “unfaithful” to his wife. He apologised to her and their children. The company had already launched an internal investigation into an affair with Alice Huang, a woman alleged to be a Chinese spy. The FBI is also examining the matter. It remains unclear what, if any, intelligence she may have gathered or passed on.
A New York Times report of a second alleged affair with an Nvidia executive dating back years intensified pressure on the board. US media outlets including CBS News, the Wall Street Journal and the Financial Times reported that directors were weighing Huang’s continued role as CEO.
Analysts highlighted the difficulty of replacing him. “It’s hard to believe,” said Bob O’Donnell, chief analyst at Technalysis Research. “[Huang] is bigger than life… a big visionary.” R Ray Wang of Constellation Research described a “consequential crisis of governance,” noting that many partnerships and investments rested on trust in Huang personally.
Brokerages moved cautiously. Baird and Bernstein Research downgraded the stock, while Morgan Stanley removed it from its Top Pick list. Bernstein’s Stacy Rasgon halved his price target, writing: “Our gut tells us that we probably haven’t yet fully probed the depths of what might be found here.”
US President Donald Trump, who has maintained close ties with Huang and praised his achievements, said he had spoken with the executive and believed him when Huang said he had “no idea” Alice Huang could be sharing information with China. Trump described Huang as “an honourable guy” and expressed confidence he would “be in good shape.” Nvidia has donated $25 million toward White House ballroom renovations.
China’s foreign ministry rejected the espionage allegations. Spokesperson Mao Ning said: “China’s scientific and technological progress is driven by independent innovation and open cooperation. The US should stop fabricating so-called espionage narratives to find pretexts for imposing technological blockades.”
Bloomberg reported that Alice Huang is currently living in Beijing with the knowledge of security officials. Taiwan has revoked her entry permit.
Huang’s leadership has been central to Nvidia’s rise, with its chips powering the data centres driving the AI industry. Successors are not obvious, and investors will closely watch the company’s forthcoming earnings report for signs of stability. The board’s deliberations continue amid the unfolding situation.
