Nvidia Shares Fall as Board Weighs Ousting Jensen Huang
Nvidia's board was meeting to decide whether to oust its chief executive, Jensen Huang, according to a source familiar with the matter, cited by Reuters. The company's shares fell about 8% in after-hours trading, the period after the regular stock market closes, after the Wall Street Journal reported that Nvidia was preparing to oust Huang.
The selloff added to heavy losses that week. Including the after-hours drop, Nvidia had lost about $600bn in stock market value since its board announced an investigation into Huang's relationship with a Chinese businesswoman, according to The Guardian's live coverage.
Huang acknowledged in a memo to employees on Sunday that he had been unfaithful to his wife, and said he took full responsibility. The New York Times reported that Huang had an extramarital affair with a company executive who reported to him. Huang is 63 years old and owns about 3.6% of Nvidia's stock.
Separately, US intelligence has said that Alice Huang was involved in facilitating shipments of Nvidia chips to Chinese firms.
Nvidia does not appear to have an obvious successor for Huang. Gil Luria, head of technology research at the investment firm DA Davidson, said that removing Huang immediately could be difficult because Nvidia does not have a succession plan, meaning a formal arrangement for who would take over the role.
