Nvidia Board Weighs Future of CEO Jensen Huang Amid Mounting Scandals

Nvidia is reportedly preparing to remove co-founder and CEO Jensen Huang, who has steered the semiconductor giant for the past 33 years. According to reports from the Wall Street Journal, the company's board scheduled a meeting as early as Wednesday to evaluate Huang's position. The deliberations follow admissions by Huang on Sunday regarding an extramarital affair with a woman identified by U.S. intelligence as a Chinese spy, alongside a subsequent report from the New York Times detailing a separate affair with a subordinate.

The leadership crisis coincides with a notable market reaction. Nvidia shares declined roughly eight percent in after-hours trading on Wednesday, bringing the stock's five-day losses to approximately eleven percent. As the primary designer of the specialized chips fueling the global artificial intelligence boom, the company holds immense value in the technology sector.

Huang is known for a centralized management style with approximately 60 direct reports and no publicly established succession plan. Bloomberg reported that Nvidia has engaged an external firm to search for potential CEO candidates. Meanwhile, SpaceX CEO Elon Musk stated on social media late Wednesday that hiring Huang would be an honor.

What to watch next: Official announcements from Nvidia regarding leadership changes and market stability.