The crisis surrounding Nvidia’s long-serving CEO has wiped hundreds of billions of dollars off the chipmaker’s market value, raising concerns over leadership stability and the future of the global AI industry.
Nvidia’s board is reportedly considering removing its co-founder and chief executive Jensen Huang following revelations of two extramarital affairs. The controversy has triggered a sharp decline in the chipmaker’s shares and raised questions about the future leadership of one of the world’s most influential technology companies.
The board met on Wednesday (November 11) to consider Huang’s future. The Wall Street Journal had earlier reported that directors were preparing to remove the 63-year-old executive. However, no final decision had been publicly confirmed.
The developments come as Nvidia, whose processors power much of the global artificial intelligence industry, faces increasing scrutiny over its business dealings with China and its corporate governance practices.
The crisis began with reports that Huang had an extramarital relationship with Alice Huang, a businesswoman whom US intelligence agencies reportedly suspect of working for Chinese intelligence.
US authorities believe Alice Huang facilitated shipments of Nvidia chips to Chinese companies and may have attempted to influence the CEO’s position on US restrictions governing advanced semiconductor exports to China.
Intelligence reports have suggested that she encouraged Huang to lobby President Donald Trump for relaxed export restrictions. Huang has publicly advocated easing restrictions on Nvidia’s Chinese business, although that does not establish that his policy positions were influenced by the alleged relationship.
Nvidia has maintained that it has no reason to believe its trade secrets or US national security were compromised. China has rejected the espionage allegations.
The controversy deepened on November 11 when the New York Times reported that Huang had also been involved in an extramarital relationship with Kimberly Powell, Nvidia’s vice-president of healthcare, who reported to him.
In a memo to employees on November 8, Huang acknowledged being unfaithful to his wife, Lori, and accepted responsibility for his conduct. However, he did not disclose details of the relationship.
Nvidia’s board subsequently launched an independent investigation into whether the CEO had been targeted by a foreign intelligence operation. Independent directors are overseeing the inquiry with assistance from outside legal counsel.
Although the board initially expressed confidence in Huang, reports that it was considering his removal indicated a significant escalation.
President Trump has expressed support for Huang, describing him as an honourable person who has contributed significantly to the US technology industry.
Investors reacted sharply to reports that Huang could be removed. Nvidia shares plunged more than 8% in after-hours trading on November 11. Including the latest decline, the company was estimated to have lost around $600 billion in market capitalisation during the week.
The stock has fallen roughly one-third from its early October peak, representing a decline exceeding $1.5 trillion in market value.
Nvidia, which previously held the position of the world’s most valuable listed company, has slipped behind Apple.
Its market value remains around $4 trillion, making it one of the most influential companies in global equity markets.
The sell-off has also increased concerns about the broader technology sector. Nvidia carries substantial weight in major US stock indices, meaning fluctuations in its share price can affect investors worldwide.
Huang co-founded Nvidia in 1993 and has remained its chief executive for more than three decades. Under his leadership, the company evolved from a graphics processor manufacturer into the dominant supplier of advanced chips used to train and operate AI models.
Its technology supports data centres operated by major technology companies and AI developers, including those providing infrastructure for OpenAI’s ChatGPT. The rapid expansion of AI investment has made Nvidia central to the global semiconductor industry.
However, Huang’s unusually prominent role in management has also created concerns about succession.
He reportedly has dozens of executives reporting directly to him, reflecting a highly centralised leadership structure. He owns approximately 3.6% of Nvidia’s shares.
The company has no obvious successor. Chief financial officer Colette Kress has been mentioned as a potential interim leader, although no appointment has been announced.
A leadership change could create uncertainty at a time when Nvidia is navigating several challenges. The company faces US restrictions on semiconductor exports to China, competition from rival chipmakers and growing investor concerns over the sustainability of massive AI infrastructure spending.
The latest controversy also raises questions about corporate governance, executive accountability and the responsibilities of company boards when personal relationships potentially intersect with business and national security interests.
For investors, the immediate concern is whether Nvidia can maintain its technological leadership and relationships with major customers without Huang.
Although demand for advanced AI processors remains substantial, prolonged uncertainty over the company's leadership could affect investor confidence.
Nvidia's forthcoming quarterly earnings announcement on November 17 will provide another important test of market sentiment.
The board’s decision on Huang could therefore have implications extending far beyond Nvidia, potentially influencing technology stocks, semiconductor investment and the wider global AI industry.