From Business Insider · Kelsey Vlamis · · 1m 50s
Nvidia stock plunges on report board plans to oust Huang
Nvidia's CEO faces potential removal after reports of a second extramarital affair emerge, sending the stock down 8% and rattling the chip industry.
In brief
Nvidia's CEO faces potential removal after reports of a second extramarital affair emerge, sending the stock down 8% and rattling the chip industry. Nvidia stock fell 8% after the Wall Street Journal reported the board was preparing to remove CEO Jensen Huang following new allegations of a second extramarital affair…
Stock tumbles on ouster report
Nvidia's stock fell 8% after hours on Wednesday after the Wall Street Journal reported the board was preparing to remove CEO Jensen Huang.
Second affair allegation emerges
The New York Times reported Huang had a second extramarital affair with Kimberly Powell, Nvidia's vice president of health care, citing five unnamed company sources.
First affair and security probe
On Sunday, Huang admitted to an affair in a memo to employees. The board had been investigating whether he was targeted by a foreign intelligence effort after US officials believed Alice Huang, a tech executive…
Huang denied affair days earlier
Days before disclosing his affair, Huang told Bloomberg his interactions with Alice Huang were related to their business dealings and were "all completely normal and not unusual."
“all completely normal and not unusual”
Ripple effects across chip sector
Other stocks tied to Nvidia fell sharply: CoreWeave dropped over 4%, Micron fell nearly 3%, Supermicro fell nearly 5%, and TSMC fell over 2% after hours.
Analyst downgrades and succession questions
Bernstein downgraded Nvidia and halved its price target to $200. Analysts named vice president Ian Buck and chief financial officer Colette Kress as potential successors.
Board hires law firm to investigate
Nvidia's board hired Wachtell, Lipton, Rosen & Katz, with partner Joon H. Kim, a former US attorney, leading the investigation. Lawmakers also requested Huang testify about his relationship with Alice Huang.
The bottom line
Nvidia stock fell 8% after the Wall Street Journal reported the board was preparing to remove CEO Jensen Huang following new allegations of a second extramarital affair.
