Nvidia, the global leader in artificial intelligence chips, is facing a major management risk. People familiar with the matter said the board is preparing to discuss ousting co-founder and Chief Executive Jensen Huang, and could meet as early as Wednesday to decide his fate. After the news emerged, Nvidia shares fell as much as 9% in after-hours trading as investors began to reprice the possibility of a top-level leadership change.
It is important to distinguish that the board's preparation to discuss removal does not mean Huang has already been ousted. So far, Nvidia has not formally announced a CEO change and has not disclosed the board's final decision. The company did not immediately respond to requests for comment after the reports were published.
Huang has been Nvidia's most iconic leader for more than three decades. Under his direction, the company grew from a graphics chip maker into a core supplier of global AI infrastructure. He has been deeply involved in chip technology roadmaps, product release cadence and partnerships with major cloud computing and AI companies. As a result, if the board ultimately decides to replace the CEO, the impact may extend beyond a management reshuffle and could reshape the broader AI industry landscape.
The latest controversy concerns Huang's personal relationships. Reports citing former Nvidia employees said Huang had an extramarital affair with a healthcare executive who reports directly to him. The reports also said that during Nvidia's developer conference in March, someone at a hotel in San Jose, California, witnessed the two behaving affectionately and that related footage was reportedly recorded. However, whether the footage is authentic and fully verified has not been publicly established.
Compared with earlier controversies involving people outside the company, the latest allegations are more sensitive because the person allegedly involved is an Nvidia executive and there is a direct reporting line. Under Nvidia's code of conduct, employees are expected to avoid personal relationships that could create conflicts of interest. But public information is not sufficient to show that the company has concluded Huang violated the rules, nor is there evidence that the alleged relationship affected specific personnel or business decisions.
Previously, Huang had already drawn scrutiny from the board, investors and the U.S. Congress over another personal relationship. That controversy involved a businesswoman suspected by U.S. intelligence officials of having ties to Chinese intelligence agencies. Huang had acknowledged marital infidelity, and Nvidia's board subsequently launched an independent investigation focused on whether he had become a target of foreign intelligence operations and whether the company's trade secrets or national security had been affected. China has denied the espionage allegations. The board previously said there was no reason to believe company secrets or national security had been compromised, but the investigation would continue.
With the second alleged extramarital affair, Huang's problems now go beyond personal conduct and extend to internal oversight, conflict-of-interest management and leadership stability. The market's biggest concern is whether Nvidia can complete a leadership transition without major business disruption. Over the past few years, Huang has been one of the most visible figures in the global AI investment boom. He has not only shaped the direction of chips and computing platforms, but also directly participated in strategic partnerships with major cloud computing companies and AI firms.
Nvidia has already experienced sharp share-price swings. After the latest reports that the board is preparing to oust the CEO, selling pressure intensified in after-hours trading, suggesting investors are reassessing the risk of the company's heavy reliance on founder-led leadership. The maturity of corporate governance and a formal CEO succession plan has also come under renewed scrutiny.
At present, it remains unknown whether the Nvidia board has met, whether a formal decision has been reached or whether Huang will publicly respond. If the board ultimately decides to remove Huang, Nvidia would face one of the most consequential leadership changes since the company's founding. If the board chooses to continue backing Huang, handling the escalating governance controversy and restoring investor confidence would become a new test. Until a formal decision is announced, Huang's future remains uncertain, and any subsequent statement could again trigger volatility in Nvidia shares and the broader AI sector.
