Updated Version 4 - Sources say Nvidia's board held a meeting to discuss the fate of CEO Jensen Huang

The title and source of the first paragraph have been amended, investor commentary has been added, and additional background information has been provided throughout the article

Alexandra Alper

Reuters, November 12 - A source familiar with the matter told Reuters that Nvidia (NVDA.O)'s board will hold a meeting on Wednesday to decide whether to dismiss CEO Jensen Huang. As the world’s leading supplier of AI processors, the company is facing reports regarding its long-time leader’s involvement in two extramarital affairs.

Nvidia has not immediately responded to requests for comment regarding the upcoming board meeting.

If Jensen Huang leaves, the chipmaker, valued at around $4 trillion, will face a leadership vacuum. Over the past three decades, he co-founded and built the company, turning it into the top supplier of AI chips, positioning it at the heart of the global AI boom and U.S.-China tech competition.

Huang, 63, currently has no clear successor and owns about 3.6% of Nvidia’s shares. He also directly manages dozens of subordinates, underscoring his tight control over the company.

“If Huang is immediately removed, it could be quite challenging for Nvidia as the company does not appear to have a succession plan... If Mr. Huang broke the law or violated company policy, the board would likely act quickly if evidence is found,” said Gil Luria, head of technology research at D.A. Davidson.

After The Wall Street Journal first reported that Nvidia was preparing to dismiss Jensen Huang, the company’s shares fell about 8% in after-hours trading. Including Wednesday’s post-market selloff, Nvidia’s market cap has shed roughly $600 billion this week since the board announced an investigation into Huang’s relationship with a Chinese businesswoman.

Earlier that day, The New York Times reported that Huang also had an extramarital affair with a company executive who reported to him.

According to The New York Times, citing five internal sources, this relationship involved Nvidia’s Vice President of Healthcare, Kimberly Powell.

The New York Times reported that on Wednesday, when Huang was called for comment about his relationship with Ms. Powell, he said: “I don’t think you should talk to me directly about this.” He then hung up the phone.

Neither Nvidia nor Powell immediately responded to requests for comment. Reuters was unable to immediately verify the report.

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Leadership Uncertainty

These reports mark a dramatic escalation of a controversy (link) that began after revelations of Huang’s relationship with Alice Huang—who U.S. intelligence agencies say helped facilitate the transfer of Nvidia chips to Chinese firms.

U.S. stock futures fell, with Nasdaq futures NQc1 down 1%. However, rival chipmakers AMD AMD.O and Broadcom AVGO.O saw their shares rise 4% and 3% respectively in after-hours trading, with one analyst noting the market expects these chipmakers to seize market share.

Investors and analysts noted that while demand for Nvidia chips is unlikely to drop in the short term, the broader group of companies powered by Nvidia could take a hit.

“Nvidia is also central to this kind of circular financing that has fueled the investment craze,” said Nick Ferres, CIO at Singapore’s Vantage Point Asset Management.

“They’re providing financing to clients. During such booms or bubbles, sometimes just a slowdown can tip it into a slump.”

On Sunday, Huang acknowledged his infidelity to his wife in a memo to employees, took “full responsibility,” but did not disclose specifics about the relationship.

On the same day, the Nvidia board launched an investigation to determine whether Jensen Huang was ever targeted by foreign intelligence operations. The probe is being led by independent directors with the help of external legal counsel. At the time, the board expressed full confidence in Huang.

U.S. President Donald Trump said he had not discussed the allegations with Huang but expressed support (link) for the Nvidia CEO, calling him “a man of integrity” and saying he has “done a tremendous job for our country.”

If Huang fails to respond to Congress’s request for a closed-door briefing over allegations of close ties with a Chinese businesswoman suspected of passing information to Beijing, he could face a congressional subpoena (link).

Additionally, Axios reported on Wednesday, citing senior sources, that U.S. Commerce Secretary Howard Lutnick blocked President Donald Trump’s crackdown on companies accused of reselling Nvidia chips to China.

The White House and Lutnick’s spokespersons have not immediately responded to requests for comment.

Huang co-founded Nvidia in 1993 with Curtis Priem and Chris Malachowsky. Early hit products included graphics chips for computer games; later, its CUDA software broadened processor applications to general computing and, eventually, artificial intelligence.

(To better serve non-English native speakers, Reuters has made this report available in several other languages through an automated translation process. As automated translations may be inaccurate or lack necessary context, Reuters makes no guarantee of the accuracy of translated texts. They are provided solely for reader convenience. Reuters accepts no liability for any damages or losses arising from the use of automated translations.)