Nvidia CEO Jensen Huang faces potential ouster amid affair allegations

The scandal has already cost the chip giant billions of dollars in market value. Nvidia’s stock price has fallen nearly 30% since reaching a record high in early October, wiping out nearly $2 billion from the company’s market capitalization, which has dropped from just under $6 trillion to approximately $4.2 trillion. The stock price briefly plunged as much as 9% to $158, its lowest level since mid-2025.

Colette Kress, Nvidia’s chief financial officer, is considered a potential successor. Armina Rosenberg, a portfolio manager and co-founder of Minotaur Capital, suggested Kress would be a natural choice as an interim CEO, though the longer-term technological direction of Nvidia remains a key question.

Huang, who founded the chipmaker over 30 years ago and is considered a driving force behind its success, is not easily replaceable. He is deeply involved in the company’s day-to-day operations, with approximately 60 managers reporting directly to him.

The board of directors initially expressed confidence in Huang and his leadership team just this past weekend. Huang publicly acknowledged infidelity to his wife and accepted “full responsibility” but provided no details about the relationship.

According to Nvidia’s statutes, directors can remove Huang with a majority vote.

Tech billionaire Elon Musk posted on X, formerly Twitter, that hiring Huang would be an “honor.”

The affair with the suspected Chinese spy has also drawn attention from U.S. politicians. Huang may face a congressional summons if he does not cooperate with a closed-door briefing regarding the allegations. Senators Elizabeth Warren and Chris Coons have requested that the government secure documents related to Nvidia’s chip exports to China and the affair, raising concerns about the effectiveness of export controls and national security.

The incident occurs amidst a high-stakes technological competition between the U.S. and China, particularly in the field of artificial intelligence, where Nvidia’s chips are crucial for training new AI models. The U.S. has restricted exports of advanced technology to China to curb its technological and military advancement.