Nvidia shares dropped 9.26% in after-hours trading on Wednesday as reports about CEO Jensen Huang’s position and personal life put corporate governance and leadership stability in focus. The company has not commented on the reports. Its board has separately commissioned an independent investigation into an espionage allegation involving Huang, while investors continue to assess whether spending on AI infrastructure can be sustained.
After-hours decline follows reports about Huang’s role
At 6:13 p.m. Eastern time on Wednesday, Nvidia was trading at $157.64, down $16.09, or 9.26%, after closing the regular session at $173.73, up $4.84, or 2.87%. The stock turned lower after a report said the board was preparing to remove Huang as chief executive.
Nvidia’s board has hired the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into an espionage allegation against Huang. Available information does not indicate that the board has made a decision about his role as CEO, and the reported preparations for his removal have not been publicly confirmed by the company.
Reports concern healthcare executive Kimberly Powell
Separate reporting said Huang had a close relationship with Kimberly Powell, Nvidia’s vice president of healthcare. The two were reportedly photographed behaving intimately at a hotel in San Jose, California, in March. Powell joined Nvidia in 2008 and has led its healthcare team since 2017.
Powell oversees Nvidia’s global healthcare business, which includes accelerated computing, AI and visualization platforms for medical imaging, life sciences, drug discovery and healthcare analytics. The business accounts for a relatively small share of Nvidia’s overall revenue. The company supplies chips to medical-device and MRI manufacturers, but its healthcare operations are much smaller than its advanced AI systems and graphics-processing businesses.
In recent years, Powell has spoken at public events including Nvidia’s annual GTC conference about applications of the company’s technology in drug discovery, healthcare services and clinical efficiency.
Nvidia did not immediately respond to requests for comment. Heller, the crisis communications firm reportedly retained by Huang, also did not immediately respond. The allegations and reports have not been independently confirmed, and Nvidia has not publicly addressed the reported relationship between Huang and Powell.
Board investigation into separate espionage allegation remains open
Days before the latest reports, Huang acknowledged being unfaithful to his wife and told Nvidia employees that his actions had hurt his wife and children, for which he was deeply sorry. Earlier reporting also described a romantic relationship between Huang and Alice Huang. US intelligence officials were said to suspect that Alice Huang was an agent of China’s Ministry of State Security.
The board’s law-firm investigation concerns that espionage allegation; its findings have not been announced. Most of Huang’s Nvidia shares are held jointly with his wife, Lori Huang, and in trusts. Those trusts hold about 800 million shares, while Huang personally holds about 70 million. The reports have not indicated any change to these ownership arrangements.
AI spending concerns remain part of the market backdrop
Nvidia shares are down about 7% so far this week and could post a sixth consecutive weekly decline. Investors have been weighing whether the current pace of investment in AI infrastructure can continue. AI infrastructure-related trades came under pressure after last week’s midterm elections, while election results and ballot measures that could make data-center construction more difficult also featured in market discussions.
Huang has long been closely associated with Nvidia and the AI industry. Nvidia chips are widely used to train models and run large AI workloads, making the company one of the main beneficiaries of the AI boom. The latest share-price move reflects both the leadership-related reports and broader scrutiny of the AI investment cycle. The board’s investigation and any confirmed decisions about Huang’s role remain key developments to watch.