Nvidia board prepares to remove CEO Jensen Huang amid scandal

The Nvidia board of directors is preparing to oust company founder and Chief Executive Officer Jensen Huang, The Wall Street Journal reported, citing people familiar with the matter.

The same sources said a board meeting to address Huang’s future could take place today.

Bloomberg reported, citing a person familiar with the situation, that Nvidia’s board has hired an outside firm to identify potential candidates to succeed Huang.

The source told the news agency that company leadership is also considering the option of appointing an interim executive until a permanent successor is found.

Sources for CBS News reported that US President Donald Trump’s administration is aware of the Nvidia board’s plans.

The New York Times previously reported, citing its own sources, that Huang, who was under investigation over his links to Megaspeed executive Alice Huang, had engaged in an extramarital affair with a subordinate.

US intelligence agencies assess that Alice Huang was recruited by China’s Ministry of State Security.

According to the NYT, the affair involved Nvidia Vice President Kimberly Powell.

Two former company employees recounted that moments of Huang and Powell showing affection toward each other were captured on video during a company conference held at a hotel in California.

The NYT specifically noted that it had not viewed this video recording.

Both Huang and Powell are married to other people.

Against the backdrop of these developments, TradingView data showed Nvidia shares dropped abruptly from $165.26 to $156.46.

As of 02:00 Türkiye time, the company’s shares were trading around $159, down 8.2%.

Suspicions regarding Huang’s close ties to the Megaspeed executive emerged in early November.

According to a Financial Times report, the connection between the two was not limited to close contact, but was romantic.

In an address to employees, the Nvidia CEO admitted to being unfaithful to his wife.

Apologising for the pain he caused his wife and children, Huang did not disclose the name of the woman with whom he had the affair.

Nvidia’s board of directors had announced the launch of an independent investigation to examine potential intelligence activity targeting the CEO.

It was announced that the review would be conducted by independent board members with the participation of outside legal counsel.

Emphasising that there was as yet no evidence that state secrets or proprietary Nvidia information had been compromised, the company expressed confidence in Huang and stated that he would remain in his post.

US President Donald Trump also voiced support for the Nvidia CEO, expressing the view that he should stay in office.

China’s Ministry of Foreign Affairs rejected the espionage allegations, describing them as groundless speculation and an attempt to smear the country.

According to a subsequent Reuters report, investors filed a class-action lawsuit against Nvidia and Huang.

The lawsuit accuses the company and its CEO of misleading shareholders by concealing the executive’s connections to the Megaspeed executive.