Nvidia board considers removing CEO Jensen Huang amid scandal and market plunge

Nvidia's board met on Wednesday to discuss the possible removal of co-founder and chief executive Jensen Huang, following disclosures that he had extramarital relationships with two women, one of whom is alleged to have ties to Chinese intelligence. The company lost more than $600 billion in market value after the reports, and its shares fell over 8 percent in after-hours trading.

Under Nvidia's bylaws, a majority of the 11 directors can remove Huang with or without cause. All directors except Huang are classified as independent, and Huang holds about 3.6 percent of the company’s shares, giving him no majority voting control.

The board has launched an independent investigation into whether Huang was targeted by foreign intelligence, while also working with an external firm to identify potential successors. Analysts have mentioned chief financial officer Colette Kress and engineer Ian Buck as possible candidates, though no decision has been announced.

"But what this certainly shows is the utter lack of appropriate governance at Nvidia," geopolitical analyst Steve Okun told Al Jazeera.

"Jensen is no doubt the de facto leader of Nvidia," Omdia chief analyst Lian Jye Su said, noting his track record of early bets on technology.

Investors are already factoring in the prospect of Huang's departure. "The market is starting to price Nvidia without its founder as the likely outcome, not a tail risk," said Armina Rosenberg, co-founder of Minotaur Capital.

U.S. President Donald Trump announced that the FBI is probing the matter, and Huang reportedly told the president he was unaware of the alleged spy connection. Congressional committee chairs have requested Huang's appearance at a closed-door briefing on November 18, and a subpoena could be issued if he does not comply.

The situation also raises questions about Nvidia's export practices. Megaspeed, a Singapore-based firm linked to the alleged spy, purchased roughly $4.8 billion of Nvidia equipment, and U.S. authorities have been investigating possible violations of export controls since 2024. However, an expert from the Hong Kong University of Science and Technology said the likelihood of Huang passing significant technical information to a spy appears extremely low.

Huang's participation in the upcoming APEC summit in Shenzhen is uncertain, and his future involvement in U.S.-China chip policy discussions remains unclear.