Nvidia chief executive Jensen Huang’s future hangs in the balance with the chip giant’s board reportedly set to meet to discuss ousting him, Reuters has reported.
Shares of the chipmaking giant fell more than six per cent in pre-market trading after reports broke of Huang having allegedly engaged in a second extramarital affair. Nvidia stock has already fallen more than 13 per cent in the last five days of trading and is down more than 20 per cent since a month ago.
The second affair, first reported by the New York Times, is said to have taken place between Huang and Kimberly Powell, Nvidia’s vice-president of healthcare who has spent the last 18 years with the company.
The news comes just days after Huang admitted to an extramarital affair with Alice Huang, a former executive at Singapore-based data company Megaspeed and possible Chinese intelligence asset.
If Jensen Huang is removed, the board is likely to have difficulty naming an immediate successor. Huang is the public face of Nvidia, frequently appearing at press conferences, industry events and political gatherings to promote both the company and his vision of AI.
He also owns around 3.6 per cent of the $4.2 trillion company’s stock and has dozens of direct reports.
The fall in Nvidia’s share price has also impacted companies that are heavily dependent on the chipmaker for their services. Taiwan Semiconductor Manufacturing Company, Nvidia’s most important supplier and the world’s largest chip foundry, fell 3.8 per cent on Thursday, while Chinese companies that rely on Nvidia chips, such as Tencent and Alibaba, were also hit.
