Nvidia board prepares to oust CEO Huang, WSJ reports
The Wall Street Journal reported Nvidia's board is preparing to remove CEO Jensen Huang and could meet as soon as Wednesday. Shares fell more than 9% after hours.
What the Journal reported
The Wall Street Journal reported on Wednesday that Nvidia's board is preparing to oust chief executive Jensen Huang, and that the board is preparing to meet as soon as Wednesday to determine his future at the company.
The report landed minutes after The New York Times reported that Huang had an extramarital relationship with Kimberly Powell, a vice president who reports directly to him. Nvidia shares fell more than 9% in after-hours trading after the Journal report, CNBC reported.
A week of escalating reports
Huang admitted on Sunday in a message to staff that he had been unfaithful to his wife, writing, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did." The admission followed a Financial Times report that he was romantically involved with Alice Huang, a woman U.S. intelligence officials believe is a spy for China's Ministry of State Security, The New York Times reported.
Nvidia's board opened an independent investigation and hired the law firm Wachtell, Lipton, Rosen and Katz. Powell joined Nvidia in 2008 and has led its healthcare business since 2017. CNBC reported that rumors of an affair between Huang and Powell had circulated for years, according to a former employee.
Analysts and prediction markets react
Baird analysts wrote that Huang might need to step down as chief executive, and the firm downgraded Nvidia stock to neutral and cut its target for the stock by 60%, to $200. The odds of a chief executive transition are increasing heading into 2027, the analysts wrote, favoring an outside hire over an internal promotion.
Bettors on Polymarket put 77% odds on Huang leaving his position by resignation or removal by year-end. Shares of Nvidia competitors were mixed after hours: Advanced Micro Devices rose about 4% and Broadcom rose about 2.8%, while Intel slipped 2.7%.
- NVDA, after hours WednesdayDown more than 9%
- NVDA, this weekDown 7%
- Polymarket odds, Huang leaves by year-end77%
- Baird target for NVDA$200, cut 60%
- AMD, after hoursUp about 4%
- Broadcom, after hoursUp about 2.8%
Shares under pressure
Nvidia shares are down 7% this week and are on pace for a sixth straight weekly slide, CNBC reported, reflecting concern about the sustainability of the AI buildout. The AI infrastructure trade was hit hard last week after the midterm elections, as Democrats won sweeping majorities in both houses of Congress and dozens of ballot measures passed that could make building data centers more difficult.
Nvidia reports third-quarter results on November 17, and 3 chairs of House committees have asked Huang to attend a voluntary closed-door briefing on November 18. About 800 million Nvidia shares are held by trusts co-owned by Huang and his wife, Lori Huang, while Huang holds about 70 million shares on his own. This post summarizes reported facts and the risks described in the linked sources. It is not a forecast and not investment advice.
