Reports Say Nvidia Board Is Preparing to Oust Jensen Huang After Second Affair Revelation

The update

The Wall Street Journal reported on Wednesday that Nvidia’s board is preparing to oust chief executive Jensen Huang, according to CNBC, minutes after The New York Times reported Huang had an extramarital relationship with Kimberly Powell, Nvidia’s vice-president of healthcare. The Financial Times reported the board was set to hold urgent talks on Huang’s future on Wednesday. Nvidia shares fell more than 9 percent in after-hours trading. Nvidia did not immediately respond to CNBC’s request for comment, and Powell could not be reached by the Financial Times.

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Why it matters

Huang admitted on Sunday that he had been unfaithful, after reports linked him to Alice Huang, a former executive at an Nvidia customer whom United States intelligence officials believe was recruited by China’s spy agency. Nvidia’s board backed Huang on Sunday and on Tuesday said it had hired the law firm Wachtell, Lipton, Rosen and Katz to investigate. Huang co-founded Nvidia, now worth about 4.2 trillion dollars and central to the global artificial intelligence buildout, and has advised President Donald Trump on chip export policy.

What to watch

Whether the board acts on the reported plan ahead of Nvidia’s quarterly earnings on November 17. Lawmakers have called for Huang to resign and are considering a subpoena over his scheduled November 18 testimony, while Trump has said the FBI is investigating the first reported relationship.

Sources

• cnbc.com — reports the Wall Street Journal’s account of the board preparing to oust Huang, the New York Times report on Powell, and the after-hours share fall
• arstechnica.com — carries the Financial Times report confirming urgent board talks on Huang’s future and the reported relationship with Powell

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