Nvidia Shares Plummet as CEO Jensen Huang Faces Potential Ouster

What Happened

Nvidia shares dropped more than 10% in pre-market trading on Thursday, November 12, 2026, following reports that the company's board is considering the removal of CEO Jensen Huang.

Huang admitted to having an extramarital affair with Alice Huang, a former executive at Singapore-based technology company Megaspeed, whom U.S. authorities suspect of having ties to Chinese intelligence.

The New York Times subsequently reported that Huang had another extramarital relationship with Kimberly Powell, Nvidia's vice president of healthcare, who reports directly to him.

Nvidia's board met on Wednesday to discuss whether to remove Huang as CEO, and U.S. lawmakers have called for his resignation.

What the Evidence Establishes

The evidence establishes that Nvidia's CEO Jensen Huang has admitted to having two extramarital relationships, one of which involves a woman suspected of being a Chinese spy.

U.S. authorities suspect Alice Huang, a former executive at Megaspeed, of having ties to Chinese intelligence, and Nvidia's board is investigating the matter.

The company's stock has lost more than $427 billion in market capitalization during the first two trading sessions following Huang's disclosure and the announcement of the board investigation.

Several Wall Street analysts have downgraded Nvidia shares, citing uncertainty surrounding Huang's tenure and potential softness in demand.

Where the Accounts Conflict

There are conflicting accounts regarding the extent of Huang's relationships and the potential national security implications.

While Nvidia's board has expressed confidence in Huang and his leadership team, some lawmakers and analysts have raised concerns about the potential risks associated with his relationships.

China has rejected the espionage allegations, calling them 'a groundless accusation, slander and a smear.'

Megaspeed, the company where Alice Huang worked, has cooperated with inspections by the U.S. Commerce Department's Bureau of Industry and Security and is prepared to work with other U.S. authorities.

Context and Stakes

The controversy surrounding Huang's relationships has significant implications for Nvidia's stock price and the company's future.

If Huang is removed as CEO, it could lead to a further decline in the company's stock price and potentially impact the company's ability to compete in the AI chip market.

On the other hand, if Huang remains as CEO, it could lead to ongoing scrutiny and potential regulatory issues.

The stakes are high, with Nvidia being one of the world's most valuable companies and a leader in the AI chip market.

Elon Musk, CEO of Tesla and SpaceX, has expressed interest in hiring Huang if he is removed from Nvidia.

What to Watch Next

The next steps in the controversy surrounding Huang's relationships will be closely watched by investors and analysts.

Nvidia's board is expected to make a decision on Huang's future as CEO in the coming days or weeks.

Additionally, the investigation into Megaspeed and its potential ties to Chinese intelligence will continue to unfold.

Lawmakers and regulators will also be monitoring the situation to determine if any further action is needed to address potential national security concerns.

The impact on Nvidia's stock price and the company's ability to compete in the AI chip market will also be closely watched.

Bottom Line

The controversy surrounding Nvidia CEO Jensen Huang's extramarital relationships has significant implications for the company's stock price and future.

The situation is complex, with conflicting accounts and high stakes.

As the investigation continues to unfold, investors and analysts will be closely watching the next steps and potential outcomes.

The situation highlights the importance of corporate governance and the need for companies to prioritize transparency and accountability.

Ultimately, the outcome will depend on the actions of Nvidia's board, lawmakers, and regulators, and the company's ability to navigate the complex and evolving landscape of the AI chip market.