Nvidia stock drops as board reportedly preps to oust Jensen Huang

Nvidia is reportedly planning to remove its co-founder and CEO Jensen Huang, who has guided the company for the past 33 years, according to reports from the Wall Street Journal. Sources informed the newspaper that the board of directors is holding a meeting as soon as Wednesday to determine Huang's ongoing role and future at the enterprise.

This development follows a series of personal scandals involving Huang. On Sunday, he acknowledged having an extramarital affair with an individual alleged by U.S. intelligence to be a Chinese spy. Later on Wednesday evening, the New York Times published a report stating that Huang also engaged in a relationship with a corporate executive who reports directly to him.

Nvidia has ascended to become one of the most valuable corporations globally by designing the essential semiconductors powering the artificial intelligence boom. However, amidst Huang's ongoing controversy, Nvidia shares tumbled approximately 8% in after-hours trading on Wednesday, bringing its five-day decline to roughly 11%.

Stock photo for illustration only, not from the actual event

Operationally, Huang is widely known for delegating very little authority and maintaining roughly 60 direct reports, as he has stated in the past. Furthermore, the firm has lacked a clear successor or a formal succession plan. According to Bloomberg, Nvidia has initiated collaboration with an external recruiting firm to locate potential candidates capable of stepping in to replace Huang as CEO.

Source: TechCrunch