Nvidia’s board is set to meet on Thursday to consider CEO Jensen Huang’s future, as allegations of a second extramarital relationship deepen the controversy surrounding the chipmaker’s leadership.
The latest allegations involve Kimberly Powell, Nvidia’s vice-president of healthcare, who reportedly worked under Huang. The New York Times, citing five people who had worked at the company, reported that two former employees had seen Huang, 63, and Powell, 48, being affectionate at a hotel in San Jose during a conference in March. A bystander reportedly recorded the two before Huang’s security team intervened. Huang declined to comment when approached by the newspaper.
The controversy follows earlier reports about Huang’s relationship with Alice Huang, a Chinese businesswoman whom US intelligence has reportedly linked to facilitating shipments of Nvidia chips to Chinese companies.
The developments come as reports emerge that Nvidia is preparing to remove Huang. The company’s shares fell around 8% in after-hours trading, while its market value has declined by nearly $600 billion this week, including Wednesday’s sell-off. Bloomberg has reported that the board is working with an outside firm to identify potential successors, as Nvidia has no clear succession plan.
Huang co-founded Nvidia in 1993 and owns approximately 3.6% of its shares. Dozens of executives report directly to him, making an immediate leadership transition potentially difficult.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and said he took “full responsibility”, without giving details. The board has also launched an investigation into whether he was targeted by a foreign intelligence operation, with independent directors working alongside outside legal counsel.
US President Donald Trump has voiced support for Huang, describing him as “an honorable guy” who had done an “amazing job” for the country. However, Huang could face further scrutiny in Washington over his alleged links to the Chinese businesswoman and claims that information was passed to Beijing.
The uncertainty has also affected rival chipmakers. AMD and Broadcom shares rose approximately 4% and 3%, respectively, in after-hours trading, as investors weighed the possibility of disruption at Nvidia.
Source: India Today
