Nvidia shares fell after hours on a new report. Its board is reportedly preparing to oust Jensen Huang.
NEW YORK — Nvidia’s stock fell more than 8% in after-hours trading Wednesday after the Wall Street Journal reported that the chipmaker’s board is preparing to remove CEO Jensen Huang, according to CBS News.
Shares dropped to $159.51. The company’s market value has fallen by more than $450 billion since Nov. 8, when Nvidia announced an investigation into Huang’s conduct, CBS reported. Nvidia has not been reported to have confirmed the Journal’s account.
Huang has admitted to an extramarital affair, according to CBS. The network reported that U.S. intelligence agencies have linked him to Alice Huang, a Chinese business executive, no relation, who is suspected of being an asset of China’s Ministry of State Security. Corporate governance experts told CBS the relationship appears to violate Nvidia’s code of conduct, which warns that personal relationships can create conflicts of interest.
Huang co-founded Nvidia in 1993 and is widely seen as the face of the artificial intelligence industry, which depends heavily on the company’s advanced chips.
This report draws on coverage by CBS News, which cited a report by The Wall Street Journal.