Nvidia stock plunges as board questions Jensen Huang’s role

Nvidia shares lost 8.6 percent in after-hours trading on Wednesday. The drop followed reports that the company’s board is evaluating the future of Chief Executive Officer Jensen Huang. The decline places the leadership of the $4.2 trillion chipmaker under immediate scrutiny.

The New York Times, The Wall Street Journal and the Financial Times reported that directors will discuss Huang’s position. This comes after revelations of an extramarital relationship with an Nvidia employee. A separate affair with a woman accused of working with Chinese intelligence services also came to light. Nvidia began investigating Huang’s conduct on Sunday. The company did not immediately answer requests for comment from Al Jazeera.

Huang, 63, co-founded Nvidia in 1993. He has led the development of advanced graphics processing units used to train frontier AI models. His leadership is central to the company’s growth into one of the world’s most valuable businesses. His role has also drawn him into the US-China competition for AI dominance. As a confidante of President Donald Trump, Huang has pushed for looser export restrictions on advanced chips to China. This stance clashes with national security officials in Washington who argue Beijing should be denied access to cutting-edge American technology.

Removing Huang would cause major upheaval at Nvidia. His management style is centralized, giving him direct control over daily operations and strategic choices. Analysts note that few apparent contenders exist to replace him. The company has not confirmed if a succession plan is in place.

Jay Goldberg, a senior analyst with Seaport Research Partners in San Francisco, told Al Jazeera that Nvidia’s organization was built around Huang. He described replacing the CEO as structurally difficult for the business. Goldberg said another leader could not reproduce Huang’s personality or the spirit he brings to the company.

Dan Ives, senior managing director at Yorkville Ives, also emphasized Huang’s importance to the firm. In a client note, Ives valued Nvidia at $300 per share with Huang leading it. He placed the value at $225 per share if he were removed. Ives said the uncertainty would pressure the stock. He expressed confidence that Nvidia could withstand the disruption and retain a foundational role in AI. Ives suggested the company would likely need to proceed without Huang, although the reported board discussions have left the executive’s future unresolved.