Nvidia’s stock plunged more than 10% in pre-market trading Thursday as investors reacted to reports that the company’s board is considering removing co-founder and CEO Jensen Huang following explosive revelations about his personal conduct and alleged ties to a Chinese spy.
The selloff accelerated after CNBC reported the board held emergency meetings Wednesday to discuss Huang’s future. The crisis stems from two extramarital relationships — one with a direct subordinate at Nvidia and another with a woman U.S. intelligence officials reportedly believe is operating as a Chinese intelligence asset.
The China Connection
On Sunday, Huang admitted to an affair with Alice Huang (no relation), an executive at cloud computing firm Megaspeed. Multiple intelligence sources told media outlets they suspect Alice Huang of working for Chinese intelligence, though no formal charges have been filed. Then on Wednesday, The New York Times revealed a separate relationship between Jensen Huang and Kimberly Powell, Nvidia’s vice president of health care — who reports directly to the CEO.
Boardroom Dilemma
“This changes everything for the board,” Bernstein analyst Stacy Rasgon told CNBC. “When it’s a direct report, it becomes much tougher to leave him in position.” Bernstein slashed its Nvidia price target from $400 to $200 following the revelations.
The board faces a no-win scenario, according to Wall Street analysts. Keeping Huang risks prolonged congressional investigations and reputational damage, while firing the visionary leader could cripple the $700 billion chipmaker’s strategic direction. “Jensen is Nvidia,” Rasgon said. “The reason they’re dominant today is decisions he made a decade ago. There’s no obvious successor.”
Market Fallout
The stock has now lost over 20% of its value in the past month. Several analysts warned CNBC that ousting Huang could trigger another 20% drop. Questar Capital’s Richard Reyle predicted Nvidia could become “uninvestable” without its iconic leader, though he stressed the broader AI sector would remain attractive.
U.S. lawmakers have begun calling for Huang’s resignation, citing national security concerns. The 61-year-old executive, who co-founded Nvidia in 1993 and built it into an AI powerhouse, now faces the gravest threat yet to his three-decade leadership.
Source: www.breitbart.com — https://www.breitbart.com/tech/2026/11/12/nvidia-shares-crash-7-in-pre-market-trading-as-investors-ponder-potential-ouster-of-jensen-huang/