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Nvidia prepares to oust Jensen Huang, WSJ reports - stock sinks
CNBC • • general
Key Points:
- Nvidia shares dropped over 9% in after-hours trading following reports that the company's board is considering ousting CEO Jensen Huang amid allegations of an extramarital affair with Kimberly Powell, Nvidia's VP of healthcare.
- The Wall Street Journal and The New York Times revealed that Huang and Powell were seen being affectionate at a hotel, intensifying scrutiny of Huang's personal conduct and its impact on the company.
- Huang recently admitted to an affair with Alice Huang, who U.S. intelligence suspects of being a Chinese spy, prompting Nvidia's board to launch an independent investigation with a top law firm.
- Despite the controversy, Huang retains significant shareholdings, mostly held in trusts with his wife, limiting his direct economic control, while Powell leads a smaller healthcare segment focused on AI applications in medicine.
- Nvidia's stock has been declining amid broader concerns about the AI sector's sustainability, with recent political developments potentially complicating data center expansions critical to Nvidia's AI infrastructure business.
