Nvidia stock plunged more than 8% to $158.78 in after-hours trading following a Wall Street Journal report that the company was preparing to oust CEO Jensen Huang.
Nvidia shares rebounded 2.92% to close at $173.73 during Wednesday’s regular trading session, recovering some of their losses after suffering sharp declines in the previous two sessions.
Meanwhile, US stock futures declined, with Nasdaq futures sliding 1%. In after-hours trading, Micron shares fell nearly 2%, while CoreWeave tumbled 6%. In contrast, rival chipmakers AMD and Broadcom gained 4% and 3%, respectively.
More trouble for CEO Jensen Huang?
According to a Wall Street Journal report, Nvidia’s board is considering removing CEO Jensen Huang from his position, with directors reportedly preparing to discuss his future at the company as early as Wednesday.
The development emerged shortly after The New York Times published a report alleging that Huang had an extramarital relationship with another Nvidia executive. According to the Journal, the company’s board was preparing to convene to deliberate on the CEO’s future.
The alleged relationship was reportedly with Kimberly Powell, Nvidia’s vice president of healthcare. According to her official company biography, Powell oversees Nvidia’s global healthcare business, including hardware and software platforms for accelerated computing, artificial intelligence and visualisation across medical imaging, life sciences, drug discovery and healthcare analytics.
The New York Times report further claimed that Huang and Powell were seen displaying affection towards each other at a hotel in San Jose, California, in March.
The latest allegations follow another report concerning Huang’s personal life. Days earlier, the CEO was reportedly linked to Alice Huang, a woman whom US intelligence officials allegedly suspect of having connections to China’s Ministry of State Security. The Financial Times reported on the alleged relationship, while The New York Times separately covered the intelligence concerns surrounding the woman.
Furthermore, reports revelead that US intelligence authorities were investigating Alice Huang over alleged assistance in shipping Nvidia chips to Chinese companies triggered a series of developments. Wall Street investors began questioning Nvidia’s corporate governance and CEO Jensen Huang’s personal conduct, prompting the company’s board to initiate an internal probe and appoint external legal advisers. Meanwhile, US lawmakers stepped up calls for stricter restrictions on semiconductor exports to China.
Separately, The New York Times reported earlier in the day that Jensen Huang had allegedly been involved in an extramarital relationship with a senior company executive who reported to him. The executive was identified as Kimberly Powell, Nvidia’s vice president of healthcare. The newspaper cited five former or current company employees familiar with the matter in its report.
Nvidia stock price returns
Nvidia shares have witnessed significant selling pressure in recent weeks, declining 9.48% over the past week and 24% in the last one month. The stock has also fallen 22.47% over three months and 21.31% over six months.
On a one-year basis, Nvidia shares are down 10.36%, reflecting a reversal in investor sentiment after a strong rally driven by artificial intelligence (AI) optimism.
Despite the recent correction, Nvidia has delivered exceptional long-term returns, surging 257.5% over three years and 472.81% over five years. This highlights the stock’s massive wealth creation during the AI boom, even as near-term volatility has increased.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
