Nvidia Falls 8.3% After Hours as Report Says Board May Oust Huang

Nvidia fell 8.30% in after-hours trading on reports that its board is moving to dismiss Chief Executive Jensen Huang, wiping $14.42 off the stock in a single session extension. As of 6 p.m. local time on the 11th, the chipmaker traded at $159.31 in New York after-hours action, down from its regular close of $173.73.

That close was strong. The stock had gained 2.87% during the regular session, rebounding after three consecutive sessions of losses. The after-hours reversal followed a Wall Street Journal report that the board could dismiss Huang as soon as that same day.

The allegations are specific. Reports say Huang had an affair with a woman identified as a Chinese spy, and separately with a company executive. Those reports, according to the reporting, added momentum to the board's preparations for his removal.

Who is named in the reports?

The New York Times reported that Huang also had a relationship with Kimberly Powell, Nvidia's vice president of healthcare, who is married. The report states Huang and Powell were seen showing affection at a hotel near the venue of Nvidia's annual developer conference, GTC (the GPU Technology Conference), held in San Jose, California, in March.

Alice Huang, identified in the reports as a Chinese spy, is named as the other woman involved with the CEO. The Wall Street Journal report frames the possible dismissal as imminent — potentially that day.

What does this change for Nvidia's partners and rivals?

The market answered immediately, and it split along competitive lines.

CoreWeave, a necloud company (a cloud provider specializing in GPU compute) and Nvidia partner, had soared 24.71% earlier in the session — before the news of the possible dismissal and the additional affair emerged. The stock has since fallen about 6% in after-hours trading, giving back part of that gain.

Nvidia's rivals moved the other way. AMD, which is expected to benefit from Nvidia's troubles, rose 4%. Broadcom gained close to 4%.

For investors, the arithmetic is blunt. A stock that closed at $173.73, up 2.87%, sat at $159.31 hours later. An 8.30% after-hours drop on governance news, not earnings, signals the market treats leadership risk at Nvidia as material — and immediate.

No dismissal had been confirmed at the time of the reports. The board's timeline, per the Wall Street Journal, was "as soon as that day."