On a Wednesday evening, after markets had closed, the value of Nvidia, the chipmaker that sits at the heart of the artificial intelligence boom, slid sharply because of reports about the private life and future of its co-founder, Jensen Huang. Three decades after he helped build the company from nothing, the question has become whether the man who shaped its vision will remain at its helm, and no one yet knows the answer. The episode shows how fragile confidence can become when a company's identity is bound up with a single person, and how quickly a private scandal can ripple outward into the
Nvidia Shares Slide After Reports of Jensen Huang's Affair and Board Review of His Future
No clear No. 2, and a board meeting about his future
Mark
Why did the stock fall so hard on this particular news?
Mimi
Two reports in a row. The Times said Huang had a relationship with an Nvidia executive, then the Journal said the board is preparing to oust him. Shares were down 8.4% after hours.
Mark
That's on top of earlier losses, right?
Mimi
Yes. 9.5% across Monday and Tuesday, a 2.9% rebound Wednesday that vanished after hours, and 27% below the early October peak at Wednesday's close.
Luke
Worth being careful here. The board's plans come from a Wall Street Journal report, and Nvidia hasn't commented. The stock is reacting to reporting, not an announcement.
Mark
What's the deeper worry for investors?
Mimi
Huang is tied to the AI story itself. He's been a cheerleader and funder of it, and people bought the stock for his vision. And there's no clear No. 2.
Luke
He did say in 2023 he doesn't believe in succession planning. But that's his stated view, not proof that no plan exists today. We don't know.
Mark
What about the foreign intelligence investigation?
Mimi
The board said it would examine whether he was a target of a foreign intelligence effort, after reports about a separate relationship with a woman US officials believe is a Chinese spy.
Luke
That's attributed to reports and officials' belief. Nothing here confirms it, and Huang apologized only for an affair, without naming anyone.
Mark
And the rest of the market?
Mimi
Nasdaq 100 futures fell 1.1%, S&P 500 futures 0.5%, while AMD and Broadcom rose.
El Pulso
- Nvidia shares dropped 8.4% in after-hours trading, extending a 9.5% fall earlier in the week and erasing a brief midday recovery.
- Two reports arrived in quick succession, one about an extramarital relationship and another saying the board is preparing to oust Huang, leaving investors scrambling for footing.
- The board's own probe into whether Huang was targeted by foreign intelligence, tied to a woman US officials believe is a Chinese spy, has added a national security edge to the turmoil.
- Nvidia has not responded to requests for comment, so the market is pricing a chipmaker at the center of the AI trade with its leadership in question and no clear successor.
- Broader futures slipped and rival chipmakers like AMD and Broadcom rose, a sign that investors are separating Nvidia's trouble from the sector as a whole.
On a Wednesday evening, after markets had closed, the value of Nvidia, the chipmaker that sits at the heart of the artificial intelligence boom, slid sharply because of reports about the private life and future of its co-founder, Jensen Huang. Three decades after he helped build the company from nothing, the question has become whether the man who shaped its vision will remain at its helm, and no one yet knows the answer. The episode shows how fragile confidence can become when a company's identity is bound up with a single person, and how quickly a private scandal can ripple outward into the wider market.
By Wednesday evening, after the market had closed, Nvidia's shares were sliding 8.4% in extended trading. Two reports had landed within hours of each other. The New York Times said Jensen Huang, who co-founded the company three decades ago, had an extramarital relationship with an Nvidia executive. The Wall Street Journal reported that the board was preparing to oust him. Nvidia had not yet answered requests for comment, and the story was still unfolding.
The week had already been rough. Earlier, the board said it would investigate whether Huang had been the target of a foreign intelligence effort, amid reports tied to a woman US officials believe is a Chinese spy. On Sunday, Huang apologized for an affair without naming the other person. The stock fell 9.5% over Monday and Tuesday. A modest rebound on Wednesday was wiped out after hours, and at the close the company was already down 27% from its October peak.
The unease reaches beyond one company. Nasdaq 100 futures fell 1.1% and S&P 500 futures dipped 0.5%, while rivals such as AMD and Broadcom climbed. Investors have bought into Nvidia largely on Huang's vision for AI, and he has said he does not believe in succession planning, leaving no obvious No. 2. The next signals to watch are a board decision on his role and any public word from the company.
By 6 p.m. Eastern on Wednesday, after the market had closed, Nvidia shares were down 8.4% in extended trading. The drop came after two reports landed in quick succession: The New York Times said CEO Jensen Huang had an extramarital relationship with an Nvidia executive, and the Wall Street Journal then reported that the company's board is preparing to oust him. Huang co-founded Nvidia three decades ago.
Nvidia did not immediately respond to requests for comment on the new reports. The coverage here, from CNN, describes the board's intentions as reported by others rather than confirmed by the company, and the story was still developing.
The reports followed a difficult few days. Earlier, Nvidia's board said it would investigate whether Huang was the "target of a foreign intelligence effort." That came amid reports that he had a separate relationship with a woman whom US officials believe to be a Chinese spy. On Sunday, Huang apologized for an extramarital affair, though he did not name the other party.
The stock had already been under pressure. Shares fell 9.5% across Monday and Tuesday, after his weekend admission and the news of the board investigation. On Wednesday they recovered during regular trading, rising 2.9%, but the after-hours slide erased those gains. At Wednesday's close, before the evening drop, Nvidia was down 27% from its peak in early October.
The company is the world's second-most-valuable, and the selloff reached beyond it. As of 6:30 p.m. ET, Nasdaq 100 futures were down 1.1% and S&P 500 futures down 0.5%. Other chipmakers moved the opposite way: Advanced Micro Devices rose 3.75% and Broadcom gained 2.7% as of 6 p.m.
Part of the market's anxiety is about what comes after Huang. He has been one of the AI boom's most steadfast cheerleaders and funders, and investors have bought Nvidia shares largely on his vision for the technology. There is also no obvious successor. Huang has said he does not believe in succession planning. "Our company was built so that I know how to run it," he told Bloomberg in 2023. "So for as long as I'm running it, that's all that matters."
What to watch now is whether the board reaches a decision on Huang's role and whether Nvidia responds publicly to the reports. Until then, investors are pricing a chipmaker at the center of the AI trade with its leadership in question and no clear No. 2.
Citas Notables
Our company was built so that I know how to run it. So for as long as I'm running it, that's all that matters.— Jensen Huang, to Bloomberg in 2023
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