After-hours Nvidia stock falls 7% as investors await Jensen Huang’s fate
Board weighs Huang’s future
The Wall Street Journal reported that Nvidia is planning to oust co-founder and CEO Jensen Huang, who has led the company for 33 years. Sources told the newspaper that the board could meet as soon as Wednesday to determine his future.
The report comes as the company faces scrutiny over Huang’s personal life. On Sunday, Huang acknowledged an extramarital affair with a woman whom U.S. intelligence has purported to be a Chinese spy. On Wednesday evening, The New York Times reported another affair, with an executive who reports to him.
Shares slide amid uncertainty
Nvidia designs chips that power the AI boom and has become one of the world’s most valuable companies. Amid the unfolding scandal, its stock fell about 8% in after-hours trading Wednesday. The stock was down about 11% over the previous five days, adding market pressure as questions grew about the company’s leadership.
Succession remains unclear
Huang has said he delegates very little and has about 60 direct reports. Nvidia has no obvious successor and no succession plan.
Key points
- The Wall Street Journal reported Nvidia’s board could consider Huang’s future as soon as Wednesday.
- Nvidia stock fell about 8% in after-hours trading and was down about 11% over five days.
- Huang has led Nvidia for 33 years and has about 60 direct reports.
- Bloomberg reported Nvidia is working with an outside firm to identify possible CEO candidates.