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Nvidia's stock dives as chipmaker's board weighs move to oust CEO Jensen Huang
CBS News • • business
Key Points:
- Nvidia's stock price dropped over 8% in after-hours trading following reports that the company's board is preparing to remove CEO Jensen Huang amid an investigation into his extramarital affair and alleged ties to a suspected Chinese intelligence asset.
- Huang admitted to having an affair with Alice Huang, a Chinese business executive linked to China's Ministry of State Security, raising concerns about conflicts of interest and violations of Nvidia's code of conduct.
- The investigation and potential CEO ouster have caused Nvidia's market value to decline by more than $450 billion since the probe was announced, posing a significant challenge given Huang's pivotal role in the AI industry and lack of clear successors.
- U.S. intelligence agencies, the FBI, and Congress are scrutinizing Huang's relationships and Nvidia's business dealings, particularly regarding the possible diversion of AI chips to China through third countries.
- Nvidia's board includes Huang and 10 other members, mostly independent, and the Trump administration is reportedly aware of the board's plans to remove Huang.
