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WSJ: Nvidia board prepares to oust CEO Jensen Huang; NVDA shares fall more than 10%

After a New York Times report on a second relationship involving Jensen Huang, the WSJ says Nvidia's board is preparing to remove him. Nvidia shares fell more than 10%.

Published: 2 min read5 views
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WSJ: Nvidia board prepares to oust CEO Jensen Huang; NVDA shares fall more than 10%
Contents
  1. How it started
  2. The board and succession
  3. Washington's response
  4. Why it matters for markets

The leadership crisis at Nvidia (NVDA) escalated over the past few hours. After new reports about the personal life of founder and CEO Jensen Huang, news emerged that the board is preparing to remove him, and Nvidia shares fell more than 10%.

How it started

The New York Times, citing five people inside the company, reported that Huang allegedly had another relationship, this time with a senior Nvidia executive who reports directly to him. Huang had earlier admitted to an extramarital affair.

The board and succession

  • The Wall Street Journal: Nvidia is preparing to oust Huang, and the board plans to meet today to decide on his future.
  • Unconfirmed reports: According to a reporter on X, the board is working with an outside advisory firm to identify possible successors and is considering appointing an interim CEO while it searches for a permanent one. This has not been officially confirmed.

Washington's response

  • A CBS reporter wrote on X that the Trump administration is aware the board is preparing to remove Huang imminently.
  • According to The Washington Post, the White House will not intervene in the board's decision.
  • The WSJ reported that Democratic Senators Elizabeth Warren and Chris Coons asked Howard Lutnick, Marco Rubio and Stephen Miller to preserve all documents and communications related to Nvidia, including those on exports of advanced AI chips to China. The request follows reports of a foreign intelligence operation linked to Huang.
  • According to reports, a person suspected of spying for China in the case has returned to her home country.

Why it matters for markets

Nvidia is one of the largest weights in the Nasdaq 100 and the S&P 500. A drop of more than 10% in the stock alone can drag the indices lower and weigh on the entire semiconductor and AI sector. Uncertainty over succession and the political side of the case (chip exports to China) are the two main sources of headline risk in the coming days. NAS100 traders may want to trade smaller with clear stop-losses for now.

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Sources: The New York Times; The Wall Street Journal; The Washington Post; CBS News; Office of Senator Elizabeth Warren

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