Nvidia Board Reportedly Poised to Oust CEO Jensen Huang, Shares Drop Nearly 9%
Reports indicate Nvidia's board is preparing to remove CEO Jensen Huang, triggering a sharp stock sell-off and weighing on tech futures.
According to reports from The Wall Street Journal and The New York Times, Nvidia's board of directors is preparing to oust Chief Executive Officer Jensen Huang. This news triggered a severe market reaction, with Nvidia shares falling approximately 8.95% in extended trading and dragging down Nasdaq 100 index futures ahead of the U.S. open.
Previously, on November 8, Nvidia's board announced the initiation of an independent investigation to examine whether Huang had become a target of foreign intelligence operations. At that time, the company stated there was no evidence of compromised national security or trade secrets. However, recent media reports suggest the board's current action stems from concerns over Huang's personal conduct, specifically involving an extramarital relationship with an executive at the chip giant.
This governance crisis highlights Nvidia's high dependence on Huang personally, known as "key-man risk." With no publicly disclosed succession plan and a highly centralized management structure, investor concerns regarding leadership stability have intensified. The fallout has spread beyond U.S. tech futures, putting selling pressure on Asian stocks including Samsung Electronics and SK Hynix, both key Nvidia suppliers.