Nvidia reportedly preparing to oust founder and CEO Jensen Huang

According to a report by The Wall Street Journal, Nvidia is preparing to remove its founder and CEO, Jensen Huang. Weighing against him is not only a romantic relationship with an alleged Chinese spy, but also another affair with an executive within the company. Following the spread of these rumors, the stock dropped over 7% in after-hours trading.

Jensen Huang’s position has worsened significantly compared to just a few hours ago, when it appeared he might retain his role despite a situation extending well beyond a personal affair—one that calls into question his ability, as CEO of the industry's most important company, to comply with U.S. government export restrictions on its most advanced products. Behind his liaison with Alice Huang, there is allegedly a major trafficking operation involving chips and other equipment rerouted through Singapore.

Is the board ready for the most extreme decision?

According to rumors coming out of the United States, Nvidia’s board is ready to strip Jensen Huang of his duties. Such a decision would come even before the conclusion of the independent investigation the company announced just last Sunday.

Official confirmations are still lacking, as are potential candidates to succeed Huang at the helm of a company crucial to the artificial intelligence cycle.

Violent market reaction

After-hours trading pushed Nvidia’s stock down more than 7%, with no credible names emerging for a successor so far.

We remind our readers that price movements will need to be updated before making any kind of investment decision.

Over the past few days, discussions—at least at the upper echelons—have centered on Nvidia’s ability to remain at the top even without its founder at the helm. It is a debate likely to continue in the coming days, with developments closely weighed by the markets.