Nvidia Board Weighs Ousting CEO Jensen Huang Amid Spy Scandal and Second Affair Allegation

Nvidia's board of directors is meeting Wednesday to decide whether to remove founder and CEO Jensen Huang, following revelations of two extramarital affairs — one with a woman whom U.S. intelligence believed was a Chinese spy and who was involved in facilitating chip shipments to China, and a second with a senior company executive who reports directly to him. The potential removal would leave the roughly $4 trillion chipmaker without an obvious successor after more than three decades under Huang's leadership.

Board Meeting and Leadership Vacuum

The board is convening Wednesday to determine Huang's future, people familiar with the matter told Reuters [1]. The Wall Street Journal first reported the board was preparing to oust Huang, triggering an 8% after-hours share decline [1]. Since the board announced its investigation into Huang's relationship with Alice Huang, Nvidia has lost about $600 billion in market value this week, according to Reuters [1]; the New York Post put the weekly loss at more than $400 billion [3]. Nvidia did not immediately respond to requests for comment on the meeting [1].

Huang, 63, co-founded Nvidia in 1993 and has maintained tight control over the company, with dozens of direct reports and no clear succession plan. He owns about 3.6% of the company's stock [1]. "Huang being removed immediately could be challenging for Nvidia since it does not have a succession plan in place," said Gil Luria, head of technology research at D.A. Davidson [1]. Bloomberg reported Wednesday that Nvidia is working with an outside firm to explore potential replacements and is weighing naming a temporary CEO [2].

Two Affairs, Two Investigations

The controversy began with Huang's relationship with Alice Huang (no relation), an executive at Singapore-based Megaspeed [2][3]. U.S. intelligence has said she was involved in facilitating shipments of Nvidia chips to Chinese firms [1]. In a memo to employees Sunday, Huang acknowledged being unfaithful to his wife of over 40 years and took "full responsibility," though he gave no details about the relationship [1][3].

"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Huang wrote [2].

The same day, Nvidia's board launched an investigation into whether Huang had been targeted by a foreign intelligence operation, overseen by independent directors with outside legal counsel [1]. The company also hired Joon Kim, a partner at Wachtell, Lipton, Rosen & Katz who previously investigated former New York Gov. Andrew Cuomo, to examine the affair [3].

On Wednesday, the New York Times reported a second affair — with Kimberly Powell, Nvidia's vice president of healthcare and one of Huang's roughly 60 direct reports [1][2]. The Times, citing five people who worked at the company, said Huang and Powell were seen being affectionate at a hotel during a company conference in March [2]. When reached by phone, Huang said, "I don't think you should be talking to me directly," and hung up [1]. Nvidia and Powell did not immediately respond to requests for comment. Reuters could not independently verify the report [1].

The Information reported Tuesday that Alice Huang, her sister, and her husband built a web of companies in China and Singapore that facilitated at least $7.5 billion in Nvidia chip sales to China, including 240,000 restricted H100, H200, and A100 chips [2]. Century Litong, one company in the network, said it obtained Nvidia's preferred cloud partner qualification through compliant channels and had no business dealings with Ms. Huang [2].

Congressional and Government Response

House Republicans have escalated pressure. Foreign Affairs Committee Chairman Brian Mast, Select China Committee Chairman John Moolenaar, and Intelligence Committee Chairman Rick Crawford sent Huang a letter requesting a closed-door briefing on his relationship with Alice Huang [2]. "Recent reports raise significant national security concerns regarding the PRC's access to sensitive U.S. technology and information," the letter stated [2]. Huang had until Nov. 11 to respond and set a date; Mast said subpoenas would likely follow if he did not comply [2].

President Donald Trump has voiced support for Huang, calling him "an honorable guy" who had "done an amazing job for our country" [1]. Trump also said the FBI is "looking into" the matter [2]. The New York Times reported Trump was briefed aboard Air Force One in May by Secretary of State Marco Rubio about intelligence showing Huang's relationship with a woman believed to be a Chinese spy, shortly before Huang joined Trump's trip to Beijing [2].

Sen. Kevin Cramer, a senior Republican on the Banking Committee, called for Huang's resignation: "The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he's got to go" [3].

The Commerce Department, meanwhile, extended the suspension of an export control rule covering affiliates of listed entities until Jan. 10, 2027 [4].

Market Reaction and Analyst Views

Nvidia shares fell about 7% in after-hours trading Wednesday [2]; Reuters reported an 8% decline [1]. Rival chipmakers AMD and Broadcom rose 4% and 3% respectively, reflecting expectations they could gain market share [1]. "Nvidia is also at the centre of the circular financing which is providing capital to the investment boom," said Nick Ferres, chief investment officer at Vantage Point Asset Management. "They are financing their customers. In these types of booms or bubbles, sometimes all it takes is a slowdown to shift it into the bust phase" [1].

Analysts are divided on the business impact. Patrick Moorhead of Moor Insights & Strategy said Huang's ouster risk is now high, citing Intel's removal of former CEO Brian Krzanich for a relationship with an employee [2]. He noted Nvidia's roadmap is set for years but warned of long-term execution risk given the company's structure around Huang [2]. Baird analyst Tristan Gerra downgraded Nvidia to Neutral, citing uncertainties around "U.S. government action likely resulting from the upcoming congressional hearing," "U.S. government investigations," and "uncertainties around CEO tenure" [2].

Others argue the core business remains intact. "I don't see the next 12 to 18 months of revenue suddenly disappearing if Jensen were to leave," said Shay Boloor, chief market strategist at The Futurum Group [2]. Dan Ives of Yorkville Ives estimated Nvidia could be worth 25-30% less without Huang: "Jensen is the core DNA of Nvidia... there is no other person on the management team bench that can step in seamlessly as CEO" [2].

What Remains Unknown

The board's decision timeline is unclear beyond Wednesday's meeting. The FBI investigation's scope and progress are not public. Whether Huang will comply with the congressional request or face subpoenas remains to be seen. The board's investigation into foreign intelligence targeting has not produced public findings. Nvidia's earnings report is due next week, adding pressure for resolution.

What is clear: the company that has become the central supplier of the global AI boom now faces its most severe leadership crisis in three decades, with national security implications that extend well beyond corporate governance.