Nvidia shares dropped 9.63% to $157 in after-hours trading on Wednesday, after gaining 2.92% to close the regular session at $173.73. The decline followed two reports about CEO Jensen Huang’s personal relationships and questions over his position, putting corporate governance and leadership continuity in focus for investors.
Report names Nvidia healthcare executive Kimberly Powell
The New York Times reported that Huang had an extramarital relationship with Kimberly Powell, Nvidia’s vice president of healthcare, who reports to him. The report cited five people who had worked at Nvidia and said both Huang and Powell are married.
When contacted by the newspaper, Huang hung up. Nvidia declined to comment. The company’s code of conduct requires employees to avoid conflicts of interest, including those arising from personal relationships. It is not clear whether Nvidia has opened an independent investigation into the latest report or determined that its code was breached.
Board discussions about Huang’s role remain unconfirmed
The Wall Street Journal subsequently reported that Nvidia’s board was preparing to replace Huang, citing people familiar with the matter. The report said directors could meet as soon as that day to discuss his future. As of publication, however, the board had announced no final decision, and Nvidia had issued no formal statement on a leadership change.
The report contrasts with the board’s public position on Nov. 8, when it said it had “confidence in Jensen and his leadership team” and announced an investigation into a previously disclosed relationship. Huang acknowledged on Sunday that he had an extramarital relationship with Alice Huang. The New York Times described Alice Huang as an executive at Megaspeed and said U.S. officials had identified her as a Chinese intelligence agent. China has denied that allegation.
Nvidia has disclosed no succession plan
Nvidia has not made a succession plan public. Huang co-founded the company in 1993 and has served as its CEO for decades. Any change in his role would be relevant to investors assessing continuity in the company’s leadership, but no successor has been identified and the board has made no confirmed decision.
Wedbush analyst Dan Ives previously told Newsweek that Nvidia had no succession plan. For now, the confirmed developments are limited: the stock fell sharply after hours, while Nvidia has neither announced a leadership change nor confirmed what action, if any, its board will take.