Nvidia reportedly considers removing CEO Jensen Huang following claims of a second affair

From the bedroom to the boardroom

The New York Times and The Wall Street Journal have alleged that Huang had an affair with an Nvidia executive who worked under him. The woman was identified as the company’s vice-president of healthcare.

The reported developments have put further pressure on Nvidia’s board, which is said to be meeting today to discuss Huang’s position.

The allegations have already had a significant effect on the company’s share price. Shares dropped 8.48% in after-hours trading on Wednesday, reaching $159 at the time of publication, according to Benzinga Pro. Nvidia stock has fallen by roughly 23% over the past month.

The company could lose around $685bn (£516bn) in market value if its recent share price decline continues. 

It's not looking chipper for Huang at Nvidia

Huang has faced questions about his personal life before. He previously admitted to having an affair with another woman, who was alleged to have been a Chinese spy.

Nvidia is also investigating separate claims that its CEO was ‘the target of a foreign intelligence effort’.

The bigger question now is whether Huang can remain at the helm. His departure would mark a major change for Nvidia, which has become closely associated with his leadership.

Under Nvidia’s bylaws, directors can remove the chief executive “with or without cause”, provided a majority supports the decision.

There are 11 members on the board, and all except Huang are classed as independent directors.

Bruce Zaro, director of Granite Wealth Management, questioned whether anyone could take over the role if Huang were forced out.

"I guess the question would be, can someone step up ‌if Jensen has to resign or is forced out?" he said.

Other market observers believe the company may already be heading towards a future without its founder.

Speaking to The Guardian, Minotaur Capital co-founder Armina Rosenberg said: “The market is starting to price Nvidia without its founder as the likely outcome, not ‌a tail risk.”

US tech analyst Dan Ives also suggested a change in leadership may be necessary, saying Nvidia “likely now has to move on without Jensen at the helm”.