Nvidia stock dropped about 8% in after-hours trading Wednesday after reports that the chipmaker’s board was considering removing longtime CEO Jensen Huang amid an investigation into his conduct.
The Wall Street Journal reported Nov. 11 that Nvidia’s directors were preparing to discuss Huang’s future. Huang co-founded the company in 1993 and has served as its chief executive for 33 years.
The leadership uncertainty followed Huang’s acknowledgment of an extramarital relationship with a woman suspected by U.S. intelligence officials of having Chinese intelligence connections. A separate New York Times investigation raised allegations involving another relationship with a senior Nvidia executive.
Nvidia Stock Drops Amid Leadership Uncertainty
The share-price reaction reflected investor concerns about a possible leadership change at the world’s leading AI chipmaker. The stock had already declined approximately 11% over the preceding five days. CNBC’s NVDA market data provides updated prices.
Huang has previously described managing about 60 direct reports, reflecting his hands-on leadership style. Nvidia has not publicly identified a designated successor.
According to Bloomberg, the company is working with an external firm to identify potential CEO candidates.
The developments follow an independent board investigation into Huang’s reported relationship with a suspected Chinese intelligence operative. TechAmerica.ai previously examined the corporate governance concerns surrounding the inquiry.
Huang has overseen Nvidia’s transformation into a leading supplier of AI processors. His possible departure would mark a major leadership change, although the company had not publicly confirmed his removal as of the Nov. 11 reports.
