Nvidia shares tumbled more than 8 percent in after-hours trading on Wednesday as reports surfaced that the board of directors is meeting to consider the future of CEO Jensen Huang.
The sudden market volatility follows revelations regarding two extramarital affairs, including one with an Nvidia employee and another with a woman suspected by U.S. intelligence of being a Chinese spy, according to Al Jazeera.
The uncertainty has caused the chipmaker’s valuation to sink $450 billion over a two-day period, CBS News reported.
88% of surveyed $NVDA employees reportedly want Jensen Huang to remain CEO while just 1% want him removed. Would've been pretty wild if Nvidia employees turned on the guy who made half of them millionaires. pic.twitter.com/3uxDZLZfCI
Investigations into personal conduct and espionage
The scandal involves Alice Huang, a former executive at the Singapore-based chip buyer Megaspeed. WIRED reported that U.S. intelligence officials believe she was an asset of China’s Ministry of State Security who had been recruited to collect intelligence on Huang.
Huang acknowledged the romantic nature of the relationship in a message to staff on Sunday, writing, “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did,” CNBC reported.
He added, “I am deeply sorry.”
A separate affair involves Kimberly Powell, Nvidia’s vice president of healthcare. The New York Times reported that the AI titan had a second affair with the executive, according to five sources. CNBC said that rumors of an affair between Huang and Powell have circulated for years, partly because Powell lacks a background in science or health, according to a former employee.
NYT says Jensen Huang had a relationship Nvidia's vice president of health care. https://t.co/restNfM7wJ
The company’s board is meeting to decide whether to oust the co-founder, CNBC reported.
Nvidia instructs teams to include Heller on press inquiries
To manage the fallout, Nvidia’s internal communications teams were instructed by the end of October 2025 to include Heller’s firm on any press inquiries regarding Huang, whether the matters were professional or personal, according to people familiar with the situation.
The New York Times reports Jensen Huang allegedly had another affair, this time with $NVDA VP of Healthcare Kimberly Powell citing five people who worked at the company. The two were reportedly seen being affectionate at a hotel during Nvidia's March conference. pic.twitter.com/JrvMc302Xd
Heller’s firm began working with Huang a year before he admitted to having an extramarital affair with a woman suspected by US intelligence of being a Chinese spy, according to WIRED. When reached by email, a representative for Heller referred WIRED to Nvidia.
The firm has also maintained regular communication with Huang’s daughter, Madison, who serves as a product marketing director at Nvidia and has become a prominent figure within the corporation, WIRED reported.
Analysts debate Nvidia valuation following leadership concerns
The news has prompted debate among financial analysts regarding the company's valuation and leadership stability. Al Jazeera reported that Nvidia shares fell 8.6 percent in after-hours trading on Wednesday.
Dan Ives, a senior managing director at Yorkville Ives, provided estimates for the company’s value based on Huang’s leadership status.
“Jensen is Nvidia, without him the company loses it central, animating spirit,” Jay Goldberg, a senior analyst at Seaport Research Partners in San Francisco, told Al Jazeera.
“We believe Nvidia’s value is $300 per share with Jensen as CEO and $225 per share without Jensen as CEO,” Ives said.
Ives, who is a well-known Wall Street tech analyst, said that the stock will face pressure due to the fluid news, but characterized the situation as a “dark day” for Nvidia.
He added, “Jensen is not replaceable by another CEO or group of interim executives, but Nvidia likely now has to move on without Jensen at the helm which seemed like a Twilight Zone episode narrative before Sunday afternoon when the news broke.”
Lamarco’s 40-page report also suggested that Chinese firms were accessing Nvidia’s advanced chips through diversion from other buyers in Southeast Asia.
Culper Research also alleged that Megaspeed, the company Alice Huang worked for, was financed by Alibaba through shell companies, according to Bloomberg. The report said that while Megaspeed had few assets at the end of 2023, it spent $2.9 billion to buy Nvidia-powered servers within one year.
Congressional scrutiny
In response to the growing scrutiny, TechCrunch reported that Bloomberg has indicated House Republicans are preparing to subpoena Huang to answer questions regarding his relationship with Alice Huang.
The report follows a letter sent to Huang by House Republicans Brian Mast, John Moolenaar, and Rick Crawford, requesting a joint, closed-door briefing regarding his ties to the Megaspeed executive, TechCrunch reported.
Brian Mast, who chairs the House Foreign Affairs Committee, also stated on Wednesday that his committee is preparing a subpoena if Huang fails to respond, TechCrunch reported.
Earlier coverage: Nvidia CEO Jensen Huang Admits to Affair as Board Investigates