Nvidia shares fall 8% after hours on report CEO Jensen Huang may be ousted
Nvidia shares fell as much as 10% in after-hours trading after The Wall Street Journal reported that the chipmaker’s board was preparing to oust founder and CEO Jensen Huang. The board’s preparations follow disclosures that Huang had two extramarital affairs, including one with a woman suspected of spying for China.
Shares fell to $156.20 at 5:28 p.m. ET Wednesday, according to market data. By 6:24 p.m. ET, the stock was trading at $159.74, down 8.05% from its regular-session close of $173.73.
The Wall Street Journal, citing people familiar with the matter, reported that Nvidia’s board was preparing to meet as early as Wednesday to decide Huang’s future.
The New York Times first reported last month that U.S. intelligence agencies had discovered a close relationship between Nvidia’s chief executive and Alice Huang, also known as Huang Le, a Chinese citizen. U.S. officials concluded that she was gathering intelligence for Beijing.
Alice Huang’s biography said she worked as a television reporter in China before becoming an executive at a Singapore-based data center company. The company became one of Nvidia’s biggest customers in Southeast Asia and has bought more than $4.8 billion in chips since June 2024, the Times reported.
China has denied the espionage allegations.
The Times reported Wednesday that Jensen Huang also had an extramarital relationship with an Nvidia executive who reports to him. Nvidia’s code of conduct tells employees to avoid conflicts involving personal relationships.
