NVIDIA held a meeting today to decide whether Jensen Huang will step down.
NVIDIA is facing a severe crisis that could reshape the leadership structure of the world's most valuable artificial intelligence chip manufacturer.
As CEO Jensen Huang is embroiled in multiple extramarital affair scandals, the company's board of directors is actively searching for potential successors to address a possible power vacuum.
According to reports from Bloomberg and The Wall Street Journal, NVIDIA's board of directors held an internal meeting on Wednesday to decide the fate of Jensen Huang, and has partnered with external institutions to select new CEO candidates, including considering appointing a transitional chief executive officer.
Earlier, The New York Times recently revealed that Jensen Huang had an improper relationship with a direct subordinate, which further aggravated the earlier serious allegation that he had an affair with a Chinese woman.
(The above image is AI-generated)
The uncertainty over succession has quickly triggered a drastic reaction in the financial market. In Wednesday's after-hours trading, NVIDIA's stock price plunged 9% at one point, not only erasing a huge amount of market value in a single day, but also triggering widespread selling sentiment, dragging other artificial intelligence concept stocks such as Intel and Dell Technologies down synchronously.
Data from Polymarket shows that the market's betting probability on NVIDIA CEO Jensen Huang leaving office or being ousted has skyrocketed. At present, the probability of Jensen Huang leaving his post before November 30, 2026 has risen to 86%; it will rise to 91% by December 31, 2026, further rise to 92% by March 31, 2027, and reach 93% by December 31, 2027.
As NVIDIA is about to release its quarterly earnings report next week, this series of unexpected events forces investors to face the unprecedented "key person risk" directly.
Wall Street is closely assessing what level of direct impact the forced departure of this core architect of AI infrastructure will have on the capital chain, customer confidence and development prospects of the entire AI industry.
Jensen Huang once had an extramarital affair with a senior NVIDIA executive, US stocks plunged after hours
Citing five former NVIDIA employees, The New York Times reported that NVIDIA CEO Jensen Huang once had an extramarital affair with Kimberly Powell, vice president of the healthcare business.
(Kimberly Powell, Vice President of Global Healthcare at NVIDIA, Source: NVIDIA official website)
According to reports, during NVIDIA's annual developer conference held in San Jose, California in March this year, Jensen Huang and Kimberly Powell were photographed having intimate behavior in a nearby hotel, and Jensen Huang's security personnel immediately intervened to ask witnesses to sign non-disclosure agreements. Jensen Huang is 63 years old, Kimberly Powell is 48 years old, and both are married.
This incident has further intensified the external scrutiny pressure on Jensen Huang. The report pointed out that when a reporter called Jensen Huang to ask about his relationship with Kimberly Powell, he only said "You should not contact me directly" and then hung up the phone. NVIDIA declined to comment, and Powell did not immediately respond to a request for comment.
After The New York Times' report, NVIDIA's US stock price fell 3% in after-hours trading, and after the news that Jensen Huang might be ousted came out, the stock price once plunged more than 9%.
During her tenure at NVIDIA, Kimberly Powell led the business of applying NVIDIA's chip technology to medical imaging equipment and higher education fields, and represented the company to deliver speeches at global technology conferences.
At the GTC conference in March this year, Kimberly Powell gave a special speech on the breakthrough applications of artificial intelligence in healthcare and biology, and even used a cartoon image of Jensen Huang in the speech.
Independent investigation and the board of directors face a major test
According to Reuters reports, NVIDIA's board of directors has launched an internal investigation on Sunday to address the national security risks mentioned in news reports.
However, the company's governance structure is under strict external scrutiny. Among NVIDIA's 11 directors, there is no chairman of the board, and many independent directors (such as Mark Stevens) have been serving since the 1990s, resulting in a highly solidified personnel structure.
Marc Goldstein, head of US research at Institutional Shareholder Services (ISS), pointed out that although Wall Street usually gives charismatic Silicon Valley founders a certain degree of tolerance, since Jensen Huang's own judgment has been questioned, the board of directors must hire independent legal counsel to enhance the credibility of the investigation.
He suggested that the board of directors consider recusing long-serving directors from the investigation to prevent future legal challenges from shareholders. Gil Soffer, a former US Department of Justice official, emphasized that if the investigation confirms that Jensen Huang concealed the relevant relationship and engaged in improper behavior, removing him from his post is an appropriate decision.
The key question: whether Jensen Huang took the initiative to disclose the relationship
One of the core focuses of the investigation is whether Jensen Huang ever disclosed this relationship to the company.
NVIDIA's code of conduct lists "personal relationships" as one of the situations that may give rise to conflicts of interest, and clearly requires employees to proactively contact the legal department for guidance when facing potential or actual conflicts of interest.
Gil Soffer, a former US Department of Justice official and chairman of the law firm Katten, said in an email that if Jensen Huang had made a full and truthful disclosure, it would be beneficial to his current situation, because it means he did not conceal the relationship, and the board of directors had the opportunity to assess it and set up corresponding control measures.
Soffer also pointed out that before more facts are made public, it is impossible to judge whether this relationship has actually caused a conflict of interest, whether the board's handling so far is appropriate, and what level of punishment Jensen Huang should receive. He said that if Jensen Huang concealed the relationship and engaged in improper behavior, "removal from office may be the appropriate disposal method".
According to NVIDIA's latest proxy statement, Jensen Huang's total compensation in the past three years amounted to 120 million US dollars, mainly distributed in the form of stock awards. The company's articles of association allow the board of directors to remove him from his position with a majority vote, "with or without cause".
Wall Street re-evaluates "key person risk"
Market analysts have generally expressed concerns about the possible leadership turmoil facing NVIDIA.
Haris Khurshid, chief investment officer of Karobaar Capital, pointed out that this is no longer a single personal scandal, but has evolved into a serious governance and key person risk, investors are starting to reprice the sentiment of the entire AI track.
Joe Gilbert, portfolio manager of Integrity Asset Management, clearly stated that this is "undoubtedly a negative impact" on NVIDIA and the entire AI ecosystem, because it is almost impossible for a successor to replicate Jensen Huang's strategic vision.
Michael O'Rourke, chief market strategist at Jonestrading, pointed out that NVIDIA previously predicted that its sales would grow by 70% this year. Under the aggressive sales strategy and supplier financing model, the successor may need to spend a whole year to "put out fires and clean up the mess".
Matt Maley, chief market strategist at Miller Tabak + Co, warned that as an important financier in the AI industry, NVIDIA's senior management turmoil may lead the entire industry to cut expenditures. Brian Mulberry of Zacks Investment Management believes that even if Jensen Huang steps down as CEO, he may still retain certain functions as a strategic advisor or board member.
This article does not constitute personal investment advice, does not represent the platform's views. The market is risky, investment needs to be cautious, please make independent judgments and decisions.
This article is from the WeChat Official Account Wall Street CN, authors: Ye Zhen & Bao Yilong, published with authorization from 36Kr.