Nvidia CEO’s future under review as board holds emergency meeting

The developments have triggered a sharp decline in Nvidia’s stock, which fell 8.6 percent in after-hours trading. The Wall Street Journal initially reported on the board meeting.

On Sunday, Nvidia announced an investigation into whether Huang had been targeted by a foreign intelligence operation related to his relationship with the suspected Chinese spy. Huang subsequently apologized for an extramarital affair, without naming the other party involved.

Investors are concerned about the potential impact of Huang’s departure on the company, particularly given his pivotal role in the AI boom and the lack of a clear successor. Huang, who has led Nvidia for 33 years, previously stated he doesn’t believe in succession planning, saying in 2023, “Our company was built so that I know how to run it.”

Nvidia shares had already fallen 9.5 percent between Monday and Tuesday following Huang’s admission and the announcement of the board’s investigation. While the stock rebounded during Wednesday’s trading hours, the after-hours decline erased those gains, leaving shares down 27 percent from their peak in early October.

Nvidia is a leading producer of graphics processing units, essential for powering AI models like OpenAI’s ChatGPT and Anthropic’s Claude, and is a key player in AI infrastructure development. The company’s stock performance has influenced broader market trends, with Nasdaq 100 and S&P 500 futures declining Wednesday evening. Conversely, shares of Advanced Micro Devices and Broadcom saw gains.

This is a developing story.