Nvidia’s board is reportedly considering removing chief executive Jensen Huang as the technology giant faces mounting controversy over allegations of extramarital affairs involving its longtime leader.
A source familiar with the matter told Reuters that the board was meeting on Wednesday to discuss whether to oust the 63-year-old billionaire, although Nvidia had not immediately responded to requests for comment.
The potential departure of Huang could create a major leadership crisis at the world’s leading supplier of artificial intelligence processors, which he co-founded more than three decades ago and helped grow into a company valued at approximately US$4 trillion.
Huang has no obvious successor and owns around 3.6% of Nvidia’s shares. He also maintains close control over the company’s operations, with dozens of executives reporting directly to him.
Technology research head at D.A. Davidson, Gil Luria, warned that removing Huang immediately could prove difficult because Nvidia does not appear to have a succession plan in place.
However, he said the board would likely act quickly if evidence emerged that Huang had broken the law or violated company policies.
The leadership uncertainty has already rattled investors. Nvidia shares fell approximately 8% in after-hours trading following a Wall Street Journal report that the company was preparing to remove Huang.
The latest sell-off came after Nvidia reportedly lost around US$600 billion in market value this week, following the board’s announcement that it was investigating Huang’s relationship with a Chinese businesswoman.
The controversy escalated further after The New York Times reported that Huang had also allegedly been involved in an extramarital relationship with a company executive who reported directly to him.
The executive was identified as Kimberly Powell, Nvidia’s vice-president of healthcare. The newspaper cited five people who had worked at the company.
When contacted by The New York Times about his alleged relationship with Powell, Huang reportedly responded: “I don’t think you should be talking to me directly.”
He then ended the phone call, according to the newspaper.
Neither Nvidia nor Powell immediately responded to requests for comment, while Reuters said it could not independently verify the allegations.
The latest reports follow revelations about Huang’s relationship with Alice Huang, a Chinese businesswoman whom US intelligence officials have reportedly linked to facilitating shipments of Nvidia chips to Chinese companies.
Nvidia’s board launched an investigation on Sunday into whether Jensen Huang had been targeted as part of a foreign intelligence operation. The inquiry is being overseen by independent directors with the assistance of external legal advisers.
In a memo to employees on the same day, Huang acknowledged being unfaithful to his wife and said he took “full responsibility”, but did not provide details about the relationship.
Despite the controversy, the board had previously expressed confidence in his leadership.
US President Donald Trump has also voiced support for Huang, describing him as “an honorable guy” who had “done an amazing job for our country”. Trump said he had not discussed the allegations with the Nvidia chief.
Meanwhile, Huang could face a congressional subpoena if he fails to respond to a request for a closed-door briefing concerning his alleged relationship with the Chinese businesswoman and claims that information was passed to Beijing.
The scandal has also affected sentiment across the semiconductor industry.
Following the latest reports, shares of rival chipmakers AMD and Broadcom rose approximately 4% and 3% respectively in after-hours trading, as investors speculated that they could benefit if Nvidia loses market share.
However, analysts believe demand for Nvidia’s processors is unlikely to weaken significantly in the immediate future, although companies closely tied to its business ecosystem could face wider consequences.
Nick Ferres, chief investment officer at Singapore-based Vantage Point Asset Management, said Nvidia was also central to the financing arrangements supporting the current AI investment boom.
He warned that a slowdown in the sector could potentially turn the investment boom into a downturn.
Separately, Axios reported that US Commerce Secretary Howard Lutnick had stalled Trump’s efforts to crack down on companies suspected of diverting Nvidia chips to China. The report cited unnamed senior sources.
The White House and Lutnick’s spokesperson did not immediately respond to requests for comment.
Huang established Nvidia in 1993 alongside Curtis Priem and Chris Malachowsky. The company initially gained recognition for its graphics processors used in computer gaming before expanding into general computing and artificial intelligence through its CUDA software platform.
