Nvidia Considers CEO Ouster, Shares Down 6%

Nvidia Considers CEO Ouster, Shares Down 6%

The Wall Street Journal reported, citing sources familiar with the matter, that Nvidia’s board convened on Wednesday evening and again that night to discuss the possible removal of founder‑CEO Jensen Huang. No official board statement has been released, but the news triggered a pre‑market sell‑off of Nvidia shares, which fell more than 6% by 05:57 ET.

In contrast, AMD and Broadcom posted gains in the same pre‑market session, with AMD rising approximately 3.6% and Broadcom up about 2.5%, reflecting investor expectations that instability at Nvidia could open market share opportunities for its two closest competitors.

William Blair analysts responded to the leadership uncertainty by upgrading AMD to an Outperform rating, arguing that the potential vacuum at Nvidia creates a runway for AMD’s custom‑chip programs and could translate into additional upside for AMD’s stock.

Separately, Jensen Huang issued a letter to Nvidia staff in which he admitted to an extramarital affair, apologizing for breaching the trust of his family and employees. The first disclosed relationship involved Alice Huang, an executive at Singapore‑based data‑services firm Megaspeed, a major Nvidia customer. U.S. intelligence officials have suggested that Alice Huang may be linked to Chinese intelligence services. A second affair was reported with Kimberly Powell, who heads Nvidia’s healthcare business, as first reported by The New York Times.

These personal disclosures add a security and reputational dimension to the board’s deliberations, intensifying scrutiny of Nvidia’s governance and leadership stability.