Overview
On 12‑Nov‑2026, Reuters reported that Nvidia (NASDAQ:NVDA) shares tumbled more than 7% in pre‑market trading after a Wall Street Journal story indicated the board of directors is preparing to remove co‑founder and CEO Jensen Huang. The alleged trigger is the revelation of two extramarital affairs, one involving a suspected Chinese intelligence operative.
Allegations and Board Actions
- The board is expected to convene as early as Wednesday to decide Huang’s fate, review whether the relationships constitute conflicts of interest, and assess any national‑security exposure.
- Bloomberg noted that Nvidia has engaged an external firm to identify a potential replacement for Huang.
- A New York Times report identified the current affair as a relationship with Kimberly Powell, Nvidia’s vice‑president of healthcare, who reports directly to Huang.
- Previously, Huang admitted to an affair with Alice Huang, a Chinese businesswoman alleged to have ties to Chinese intelligence; Bloomberg said Alice was in Beijing during the week of the report.
- U.S. officials are reportedly examining whether the relationships could have allowed sensitive technology or business information to reach China.
Corporate Response and Investigations
- Nvidia’s board launched an independent investigation with outside legal counsel and stated the company has no reason to believe trade secrets or national‑security information were compromised.
- U.S. President Donald Trump, a close friend of Huang, said the FBI is investigating the matter and relayed Huang’s claim that he was unaware of Alice Huang’s alleged espionage links.
- Two House Republicans indicated they may subpoena Huang for a closed‑door congressional hearing if he does not voluntarily appear.
Market Reaction and Valuation Impact
- Analyst Bernstein warned that the board’s inability to act swiftly could invite further allegations, describing the situation as a “dark day” for Nvidia.
- Yorkville Ives described the next 48 hours as “very fluid,” estimating Nvidia’s intrinsic value at $300 per share with Huang as CEO versus $225 per share without him.
- Multiple brokerages downgraded Nvidia, including Morgan Stanley, Baird, Bernstein, Oppenheimer, Evercore, and William Blair, which cut its rating to “market perform” from “outperform,” citing the leadership uncertainty as a significant near‑term overhang.
- Companies linked to Nvidia through circular financing deals—CoreWeave, Iren, and Coherent—retreated from the market before the opening bell, reflecting heightened risk perception.
Competitive Landscape
- In contrast, Advanced Micro Devices (NASDAQ:AMD) rose 2.3% and Broadcom (NASDAQ:AVGO) climbed 1.7% in pre‑market trading, as investors speculated they could capture a larger share of the lucrative AI chip market amid Nvidia’s turmoil.
Sources
- Article authored by Frank DeMatteo, published 12‑Nov‑2026, 04:12 am and updated 05:24 pm.
- Contributions from Ambar Warrick and Scott Kanowsky.