New York — Nvidia’s board is meeting Wednesday evening to discuss CEO Jensen Huang’s future as its leader, two sources familiar with the matter told CNN. The latest wrinkles in the chip company’s stunning corporate scandal sent shares falling in after-hours trading. The board meeting followed a New York Times report that Huang — already under scrutiny for his relationship with a woman believed to be a Chinese spy — had an additional extramarital relationship with a company executive. There was some expectation among Trump administration insiders that the meeting would result in Huang being ousted after 33 years leading the company, the sources told CNN. The Wall Street Journal first reported the meeting. Nvidia shares were trading down 8.6 per cent as of 8 p.m. ET as investors digested the developments. Nvidia did not immediately respond to requests for comment about the meeting or the Times report. On Sunday, Nvidia’s board said it would investigate whether Huang was the “target of a foreign intelligence effort” amid reports that he had a relationship with a woman U.S. officials believe to be a Chinese spy. Huang apologized for an extramarital affair the same day, although he did not name the other party. Huang is without a clear No. 2 if the board decides to remove him, with the founder having previously said he does not believe in succession planning. “Our company was built so that I know how to run it,” he told Bloomberg in 2023. “So for as long as I’m running it, that’s all that matters.” Investors are weighing the outlook for the chipmaker that’s been at the center of the AI boom if Huang is ousted from his role. The CEO has been one of AI’s most steadfast cheerleaders and funders, and investors have flocked to Nvidia shares because of his vision for the tech boom. Nvidia shares dropped 9.5 per cent across Monday and Tuesday after Huang’s weekend admission of extramarital affair and news of the Nvidia board’s investigation. Shares rebounded Wednesday during trading, rising 2.9 per cent, before tumbling in after-hours trading and erasing those gains. Nvidia shares were down 27 per cent from a peak in early October as of the market close on Wednesday, before the sharp after-hours decline. Nvidia pioneered graphics processing units, which are semiconductor chips that are critical for AI. The company’s chips are used to power AI models, from OpenAI’s ChatGPT to Anthropic’s Claude. Nvidia is also a major player in backing massive infrastructure deals for the AI buildout. The drop in Nvidia shares weighed on the broader market: Nasdaq 100 futures fell 0.9 per cent and S&P 500 futures fell 0.5 per cent as of 7 p.m ET. While Nvidia shares tumbled, shares of other major semiconductor chipmakers moved higher. Advanced Micro Devices shares rose 4.5 per cent as of 7 p.m. ET, while Broadcom shares rose 2.9 per cent. This is a developing story and will be updated.
