Nvidia shares fell about 8% after hours on Wednesday after the Wall Street Journal reported that the board is preparing to oust CEO Jensen Huang. The report followed a New York Times story about an alleged relationship with an executive. Nvidia did not immediately respond to a request for comment.
Nvidia shares fell more than 7% in after-hours trading on Wednesday after the Wall Street Journal reported that the company's board is preparing to oust CEO Jensen Huang. The Journal's report cited people familiar with the matter, according to Reuters. Nvidia did not immediately respond to a request for comment.
Board reportedly could meet as soon as Wednesday
The board is preparing to meet as soon as Wednesday to determine Huang's future, the Journal reported. It also said Huang had two extramarital affairs, including one with a suspected Chinese spy.
The news landed minutes after the New York Times reported that Huang had an extramarital relationship with Kimberly Powell, Nvidia's vice president of health care, according to the Times. Reuters said the Times reported that Huang had an affair with a company executive who reported to him.
Investigation and apology precede the reports
The reports come days after Huang acknowledged being unfaithful to his wife. In a message to Nvidia staff on Sunday, he wrote: "I was unfaithful to my wife. My actions hurt her and our children."
Nvidia's board has opened an independent investigation and hired the law firm Wachtell, Lipton, Rosen & Katz to look into the spying allegations.
Stock was already sliding
Nvidia closed Wednesday at $173.73, up 2.87%. Then after-hours trading pushed it down to $159.43 at 6:00 PM EST, a drop of 8.23%, CNBC data showed.
Even before the reports, the stock was down 7% this week and on pace for its sixth straight weekly slide, CNBC reported. CNBC tied that slide to broad concern about the sustainability of the artificial intelligence buildout.
Sources: CNBC, Reuters via Investing.com
Trading involves risk.
Risk Disclaimer
