7%: Nvidia stock falls as report says board is preparing to oust Jensen Huang after second affair
Shares Drop After Reports
Nvidia stock declined 7% after hours Wednesday following new reports about Huang, the company’s chief executive. The reports concerned both his position at Nvidia and allegations about his personal life.
The Wall Street Journal reported that Nvidia’s board was preparing to remove Huang. Earlier, the board said it was investigating whether a foreign intelligence effort had targeted him.
New Allegation About Executive
The New York Times reported Wednesday that Huang had a second extramarital affair, this time with an Nvidia executive who reports to him. The newspaper cited five unnamed people who had worked at the company.
Nvidia did not provide a statement to The New York Times. The company also did not respond to Business Insider’s request for comment.
Huang Says He Is Cooperating
On Sunday, Huang told employees in a memo that he had had an affair and was cooperating with the board’s investigation. He did not identify the person involved. The New York Times had earlier reported that US intelligence officials believed Alice Huang, a technology executive who had become close to Jensen Huang, was recruited to collect information for Beijing.
Key points
- Nvidia shares fell 7% in after-hours trading Wednesday.
- The Wall Street Journal reported that the board was preparing to remove Jensen Huang.
- The New York Times reported a second alleged affair involving an executive who reports to Huang.
- Huang said he was cooperating with the board’s investigation.