Nvidia Stock Plunges After Reports Say Board May Remove CEO Jensen Huang

Nvidia stock tumbled more than 7 percent in after hours trading on reports the board could remove founder and CEO Jensen Huang. The move reportedly follows a scandal involving a businesswoman tied to Chinese government sources. Shareholders have already filed a lawsuit against the company.

Nvidia Stock Falls Sharply on Removal Report

Shares of graphics chip maker Nvidia dropped more than 7 percent after the close of regular US trading. The slide followed a Wall Street Journal report claiming the company’s board may remove CEO Jensen Huang. Trading data confirmed the sharp after hours decline.

As of 4:30 a.m. IST, Nvidia stock had fallen 7.38 percent to 160.9 dollars per share. The stock had actually climbed during Wednesday’s regular session, closing up 2.87 percent at 173.73 dollars.

Board May Act This Week

Nvidia’s board could remove founder and CEO Jensen Huang as soon as Wednesday US time, the Wall Street Journal reported, citing unnamed sources. The newspaper did not specify exactly when a final decision would be announced.

The New York Times had earlier reported that a businesswoman named Alice Huang maintained a close relationship with the Nvidia chief. The paper claimed she also served as a source of information for Chinese government structures. Huang has admitted to the extramarital relationship. Nvidia has announced an independent investigation into the matter.

About Nvidia

Nvidia was founded in 1999 and has grown into a leading name in graphics processing technology. The company is also heavily involved in artificial intelligence development. Its headquarters sit in Santa Clara, California.

Earlier this month, Elon Musk publicly backed Huang as the scandal involving alleged Chinese intelligence ties unfolded. Just days later, shareholders filed a lawsuit against both Nvidia and Huang over the matter. The legal and boardroom pressure has only intensified since then.