QuoMarkets

Nvidia Board Meets on Jensen Huang’s Fate as $600B Vanishes

Nvidia’s Board Is Meeting on Jensen Huang’s Fate, and $600 Billion Is Already Gone

At a Glance

  • Nvidia’s board is meeting to decide whether to oust CEO Jensen Huang, a source told Reuters.
  • Shares fell more than 8% after hours on Wednesday.
  • The slide has erased about $600 billion in value this week, if the losses hold.
  • Huang has no obvious successor.
  • Polymarket puts the odds he leaves by year-end at 83%.

The $4 trillion chipmaker could lose the man who built it, with no clear plan for what comes next.

On Sunday, Nvidia’s board said it backed Huang. By Wednesday night, it was meeting on whether to remove him. Two reported affairs turned that confidence upside down.

Key details

Huang, 63, told staff in a Sunday memo that he had been unfaithful to his wife. The board then opened an investigation into whether a foreign intelligence operation had targeted him. Reports say one relationship was with a woman suspected of being a Chinese spy. China calls those claims groundless.

On Wednesday, the New York Times reported a second affair, with an executive who reports to him. The Wall Street Journal said the board was preparing to fire him. Reuters could not verify the second report.

Under the bylaws, a majority of the 11 directors can remove him “with or without cause.” All but Huang are independent. He owns about 3.6% of the company.

Market reaction

Nvidia dropped more than 8% in extended trading. S&P 500 E-mini futures slipped 0.4%.

Why it matters

Nvidia sits at the center of the AI boom, and Huang is its face. Analysts name CFO Colette Kress and engineer Ian Buck as likely stand-ins. Chinese AI firms are already rushing to rent Nvidia computing power outside China, worried Washington may tighten the rules.

What to watch

Look for the board’s decision, any word on a successor, a statement from Nvidia, and how the stock opens at the next session.

Stay ahead of every market-moving headline with QuoMarkets. 

Source: Reuters

The above content is provided and paid for by QuoMarkets and is for general informational purposes only. It does not act as an investment or professional advice and should not be assumed upon as such. Prior to taking action based on such information, we advise you to consult with your respective professionals. We do not accredit any third parties referenced within the article. Do not assume that any securities, sectors, or markets described in this article were or will be profitable. Market and economic outlooks are subject to change without notice and may be outdated when presented here. Past performances do not guarantee future results, and there may be the possibility of loss. Historical or hypothetical performance results are published for illustrative purposes only.

Share
QUOlogo_RGB_S

Thank you for visiting
QuoMarkets.com

I confirm that I am interested in visiting this website without prior solicitation and have not received any prohibited direct marketing activity in my country of residence.
Quomarkets and its affiliated entities do not operate in your home jurisdiction.
You wish to obtain information from this website based on reverse solicitation principles in accordance with the applicable laws of your home jurisdiction.

Your answer does not comply with visiting our website.