Nvidia's board is considering removing CEO Jensen Huang after revelations of multiple extramarital affairs. The board could meet as soon as today to decide on Huang's future. Huang acknowledged on Sunday that he had been unfaithful to his wife.
The controversy escalated when the New York Times reported on Wednesday that Huang had an affair with Kimberly Powell, vice president of Nvidia's healthcare business, citing five company employees. Earlier reporting linked Huang to Alice Huang, an executive at Singapore-based Megaspeed; U.S. intelligence officials reportedly suspect Alice Huang of working for Chinese intelligence.
Market reaction: how did stocks move?
News of the scandal pushed Nvidia shares down 8% in after-hours trading. The impact spread across the AI ecosystem, producing notable moves in related stocks.
- AMD: shares rose 3.1%, as investors speculated AMD could gain market share from a weakened Nvidia.
- CoreWeave: shares fell 6.5%; the company is heavily exposed to Nvidia technology and is also a significant Nvidia investor.
- Super Micro Computer: shares declined 5.3%, amid concerns that uncertainty around Nvidia could spill over to tightly linked hardware makers.
- Broadcom: shares gained 2.1%, with investors viewing Broadcom as a potential beneficiary or alternative in AI infrastructure spending.
The shockwaves extended to Chinese and Hong Kong-listed names as well.
- Alibaba: U.S.-listed shares fell 5.5% following worries about potential U.S. restrictions on Chinese access to advanced Nvidia chips. In Hong Kong trading Alibaba's shares dropped 6.7%, making it one of the biggest losers on the Hang Seng technology index that day.
- Z.AI and MiniMax: the Chinese AI model developers' stocks fell by more than 7%.
Part of the sell-off in Chinese names reflects investor fear that the scandal could increase the likelihood of tighter U.S. export controls on advanced AI chips to China. Alibaba is also directly connected to the story because it leases Nvidia chips via Megaspeed International — the firm whose founder is alleged to have ties to Chinese intelligence.
Why this matters
The episode matters for two reasons. First, it raises corporate governance and leadership questions at a pivotal technology company, which can directly affect business operations and strategic planning. Second, the scandal has geopolitical implications: it intersects with national-security concerns and the controls around chip supply, which can prompt regulatory responses. Together, these factors explain why the news rattled not only Nvidia shares but also the broader AI and chip supply chain.
What next
The Nvidia board's decision and the outcome of any internal investigations will likely shape further market reactions. Investors will watch company statements and potential regulatory moves closely, especially any actions that could limit exports or leasing of advanced chips.
This article is not investment advice or a recommendation.
