NYT: Nvidia CEO Huang reported to have had affair with VP Powell
The New York Times reported Nvidia chief Jensen Huang had an extramarital relationship with Kimberly Powell, his vice president of healthcare. Nvidia shares fell more than 3% late Wednesday, erasing a 2.87% gain.
What the Times reported
The New York Times reported late on Wednesday that Nvidia chief executive Jensen Huang, 63, had an extramarital relationship with Kimberly Powell, 48, the company's vice president of healthcare, who reports directly to him. The report cited 5 people who worked at Nvidia, all speaking on condition of anonymity.
Powell joined Nvidia in 2008 and leads its worldwide healthcare business. 2 of the 5 people said Huang and Powell, who are both married to other people, were filmed being affectionate at a hotel in San Jose during a Nvidia conference in March, although the Times said it has not seen the video.
- NVDA, Wednesday close$173.73, up 2.87%
- NVDA, late WednesdayDown more than 3%
- People who spoke to NYT5, all anonymous
- Q3 earnings reportNovember 17
- House briefing requestedNovember 18
No comment, and a question of conduct
Huang hung up the phone when the Times called him for comment, and Nvidia declined to comment on the report.
The allegation raises a governance question beyond the personal conduct: Nvidia's code of conduct tells employees to avoid situations where their actions create a conflict, including personal relationships, and says the company promptly investigates reports of misconduct. The Times report does not say whether the board has opened a separate inquiry into the Powell matter.
A second crisis in the same week
The Powell report comes days after Huang admitted a separate affair in an email to staff on November 8, writing, “I was unfaithful to my wife.” The New York Times reported on October 29 that United States intelligence officials believed Alice Huang, a former executive at the Singapore data center company Megaspeed, was gathering information for Beijing. Nvidia's board opened an independent investigation and hired the law firm Wachtell, Lipton, Rosen and Katz on November 10.
President Donald Trump said on November 9 that the FBI was also looking into the matter. 3 chairs of House committees have asked Huang to attend a voluntary closed-door briefing on November 18. China has denied the espionage claims, and Nvidia's board has said it has no reason to believe company secrets or national security were compromised.
Shares gave back the day's gain
Nvidia shares closed on Wednesday at $173.73, up $4.84, or 2.87%, then fell more than 3% late in the session after the Times report, erasing the day's gain. The stock traded around $167.93 after hours.
The broader market rallied on the day, with the S&P 500 up 1.3% and the Nasdaq Composite up 1.6%. Nvidia reports third-quarter results on November 17, and investors will be watching whether the board investigation or the congressional briefing changes anything about Huang's position. This post summarizes reported facts and our view of the risks. It is not a forecast and not investment advice.
