Nvidia shares slump as board reportedly weighs ousting Jensen Huang over second affair

Nvidia shares fell sharply in after-hours trading on Wednesday, 11 November 2026. The drop came after reports that CEO Jensen Huang had an extramarital relationship with a company executive and that the board is meeting to discuss his future.

The New York Times reported that Huang had a relationship with Kimberly Powell, an Nvidia executive who reports directly to him. The Times said the two were seen being affectionate at a hotel during a company conference in March.

The Wall Street Journal later reported that Nvidia’s board is preparing to oust Huang after reports of two extramarital affairs. Citing people familiar with the matter, the paper said the board could meet as soon as Wednesday to decide his future.

Nvidia did not immediately respond to requests for comment on the new reports. No response from Powell has been reported.

Share price falls after brief rebound

According to CNN, Nvidia shares were down 8.4% as of 6pm Eastern Time. Market data on Yahoo Finance showed the stock at US$160.81 at 6.32pm, down US$12.92, or 7.44%, from its closing price.

The stock had closed Wednesday’s regular session at US$173.73, up 2.92%. That rebound followed a 9.5% fall across Monday and Tuesday, after Huang admitted to an extramarital affair over the weekend and the board announced an investigation.

CNN reported that as of Wednesday’s market close, before the after-hours drop, Nvidia shares were 27% below their peak in early October.

Other chipmakers moved higher. Advanced Micro Devices (AMD) shares rose 3.75% and Broadcom shares rose 2.7% as of 6pm Eastern Time, according to CNN.

Earlier affair with alleged Chinese intelligence asset

The new report adds to a scandal that began over the weekend. On Sunday, 8 November 2026, Huang admitted in a memo to employees that he had had an extramarital affair. He did not name the other party.

“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang wrote.

The affair has been reported to involve Alice Huang, a Megaspeed executive whom US officials believe worked for China’s intelligence services. Reports indicate their ties go back to at least 2023.

Nvidia’s board said it would investigate whether Huang had been “the target of a foreign intelligence effort”. In a statement on Sunday, the board said it had “no reason to believe that either national security or Nvidia secrets were compromised.”

The Information reported on Tuesday, 10 November 2026, that the relationship helped Chinese companies acquire Nvidia chips worth US$7.5 billion. Its report was based on two people who know Alice Huang and on corporate records.

According to The Information, Alice Huang, her sister and her husband built a network of companies in China and Singapore to acquire Nvidia chips. One of them, Shanghai Century Litong, was added to Nvidia’s list of preferred cloud partners.

The publication reported that after the US banned exports of Nvidia’s most powerful chips to China, Alice Huang helped secure 240,000 chips from distributors in China, including H100, H200 and A100 models.

Century Litong told The Information that it obtained its preferred cloud partner status through compliant channels. “Our company has no business dealings with Ms. Huang,” the company said.

Political reaction in Washington

President Donald Trump has stood by Huang, calling him “an honorable guy.” On Monday, 9 November 2026, Trump told reporters at the White House that the FBI was “looking into” the matter.

The New York Times reported on Tuesday that Trump was told aboard Air Force One in May that US intelligence showed Huang was in a relationship with a woman believed to be a Chinese spy.

According to the Times, Secretary of State and national security adviser Marco Rubio gave the warning shortly before Huang joined Trump’s trip to Beijing. The report said it was at least the second time in seven months that Trump had been briefed on the matter.

Republican lawmakers have also stepped up scrutiny. Rep. Brian Mast, chair of the House Foreign Affairs Committee, told ABC News he is prepared to subpoena Huang if he does not respond to a request for a closed-door briefing.

The request came in a letter from Mast, Select Committee on China chair Rep. John Moolenaar and House Permanent Select Committee on Intelligence chair Rep. Rick Crawford. Huang was given until 11 November to respond and set a date.

“Recent reports raise significant national security concerns regarding the PRC’s access to sensitive U.S. technology and information,” the letter stated.

House Democratic Leader Hakeem Jeffries said on Monday that Congress “will need a full briefing” and that there are “real concerns to address”.

No clear successor

Huang co-founded Nvidia more than three decades ago. He has no clear deputy if the board removes him, and he has previously said he does not believe in succession planning.

“Our company was built so that I know how to run it,” Huang told Bloomberg in 2023. “So for as long as I’m running it, that’s all that matters.”

Patrick Moorhead, chief analyst at Moor Insights & Strategy, told Yahoo Finance that the risk of Huang being ousted is now high. He said the latest report raises the stakes because it involves an employee.

Moorhead pointed to Intel, whose board removed former CEO Brian Krzanich over an undisclosed relationship with an employee. He said removing Huang would not pose short-term risk because Nvidia’s product roadmap is set for years ahead.

In the longer term, Moorhead said, Nvidia has no planned successor, and because its structure is built around Huang, there is potential execution risk.

Analysts weigh valuation impact

Dan Ives, partner at Yorkville Ives, said on Tuesday that Nvidia would be worth “a lot less (25%-30%)” if Huang were removed as CEO.

“Jensen is the core DNA of Nvidia and its AI success and ambitions are heavily tied to him staying on as CEO,” Ives said, adding that no one on the management team could step in seamlessly.

On Wednesday, Baird analyst Tristan Gerra cut his rating on Nvidia to Neutral in a note titled “Icarus’ Rise and Fall; Company Will Be Fine.”

Gerra said he would keep the rating until uncertainties are resolved. These include possible US government action after the upcoming congressional hearing, the outcome of government investigations, the impact on revenue and the question of Huang’s tenure as CEO.

Citi analyst Atif Malik had earlier noted that investors were focused on governance, regulatory scrutiny, export-control compliance and leadership stability. He said the company had stated that Huang would remain CEO while the investigation proceeds.