Nvidia board holds emergency meeting amid leadership concerns

The company has not yet responded to requests for comment regarding the board meeting. This contrasts with Sunday’s statement where the board expressed confidence in Huang and his leadership.

According to Nvidia’s bylaws, Huang can be removed “with or without cause” by a majority vote of the 11 directors, all but one of whom are considered independent. The news triggered a significant market reaction, with Nvidia’s stock price dropping over 8% in after-hours trading. This decline represents a potential loss of approximately $600 billion in market value since reports surfaced about an investigation into Huang’s relationship with Alice Huang, a businesswoman alleged to be a Chinese spy.

The situation escalated after revelations that U.S. intelligence is investigating Alice Huang’s alleged role in facilitating shipments of Nvidia chips to Chinese firms. This has prompted scrutiny of Nvidia’s governance, calls for stricter chip export controls to China, and raised questions about Huang’s personal conduct.

“The market is starting to price Nvidia without its founder as the likely outcome, not a tail risk,” stated Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, which holds Nvidia shares. “Losing Jensen would be a real blow.”

Huang’s potential departure would create a leadership void at the chipmaker he co-founded and built into a dominant force in the AI industry and a key player in the U.S.-China technology rivalry. Huang, 63, owns roughly 3.6% of Nvidia’s stock and maintains tight control through numerous direct reports. Bloomberg reported that the board is working with an external firm to identify potential replacements, including Chief Financial Officer Colette Kress, who has held the position for over a decade. Prediction markets now place an 88% chance of Huang’s resignation or removal by the end of the year, with Ian Buck, who oversees data center operations, as a favored successor.

The leadership uncertainty comes just before Nvidia is scheduled to release its quarterly financial results on November 17. The New York Times reported that Huang also had an affair with Kimberly Powell, Nvidia’s vice president of healthcare. When contacted, Huang reportedly declined to comment and ended the call.

Following the news, U.S. stock futures declined, impacting companies like Micron and CoreWeave. Conversely, shares of competitors AMD and Broadcom saw gains. In Asia, Samsung Electronics rose slightly while SK Hynix dipped. Analysts suggest that while demand for Nvidia’s chips is unlikely to decrease immediately, companies reliant on Nvidia’s technology may face challenges.

In a memo to employees, Huang acknowledged infidelity and accepted responsibility without providing details. U.S. President Donald Trump stated he spoke with Huang, who claimed he was unaware of the alleged spy’s identity. Huang faces a potential congressional subpoena if he fails to provide a closed-door briefing regarding the allegations. Additionally, Axios reported that U.S. Commerce Secretary Howard Lutnick previously delayed Trump’s efforts to restrict companies suspected of diverting Nvidia chips to China.