Nvidia's Board of Directors Considers Jensen Huang's Resignation

The board of directors of Nvidia is considering the removal of CEO and co-founder Jensen Huang, reported The Wall Street Journal on November 11, citing sources. According to Reuters, the directors were planning to hold a meeting to discuss his future. Nvidia has not yet announced any official decision regarding his dismissal or the appointment of a successor.

Why the question of resignation arose

The issue arose due to reports about Huang's personal relationships and potential risks to the company's security. Media outlets reported his connection with Alice Huang from Singapore's Megaspeed, whom American intelligence sources suspect of having contacts with Chinese intelligence services. These suspicions are not proven. The New York Times also reported on the alleged relationship of the executive with Nvidia's Vice President of Healthcare, Kimberly Powell.

On November 8, Huang admitted to marital infidelity in a letter to employees and apologized to his family and colleagues. On the same day, Nvidia announced an independent investigation into possible foreign intelligence influence. The board engaged external lawyers for the investigation; the company emphasized that there are currently no grounds to believe that trade secrets or U.S. security have been compromised.

How Nvidia's stock reacted

During the main session on November 11, Nvidia's stock rose by 2.9%, but after WSJ's reports, it fell by approximately 8% in after-hours trading to $159.76. The reaction indicates investor concern over a potential leadership change, but it does not allow for a prediction of future price movements. Huang has led Nvidia since its founding in 1993, so his potential departure could impact the company's management. The publication of the quarterly report is scheduled for November 17.