Nvidia shares dropped sharply in after-hours trading on Wednesday following reports that the chipmaker’s board was set to discuss the future of Chief Executive Officer Jensen Huang amid allegations concerning his personal relationships and possible links to Chinese intelligence.
 
The company’s stock fell 8.6 per cent after reports by The New York Times, The Wall Street Journal and the Financial Times said Nvidia’s board of directors would consider Huang’s position.
 
The reports alleged that Huang had an extramarital relationship with an Nvidia employee, as well as an affair with a woman accused of having links to Chinese intelligence services.
 
Nvidia, which launched an investigation into Huang on Sunday, did not immediately respond for comment, reports Al AJzeera.
 
Huang, who co-founded Nvidia in 1993, has become one of the most prominent figures in the global artificial intelligence boom. The company, valued at $4.2 trillion, is a leading supplier of high-end graphics processing units (GPUs) used to train and operate advanced AI models.
 
Known for his signature leather jackets, Huang has also become a key figure in the growing technological rivalry between the United States and China, particularly over access to advanced AI chips.
 
A close confidant of US President Donald Trump, Huang has advocated easing restrictions on exports of high-end chips to China. His position has put him at odds with national security officials in Washington who argue that Beijing should be denied access to cutting-edge American technology.
 
Potential leadership shake-up
Huang’s possible departure would mark a major turning point for Nvidia, given his central role in building the company into one of the world’s most valuable businesses.
 
The 63-year-old executive is widely regarded as central to Nvidia’s success. His leadership style is highly centralised, with Huang closely involved in both daily operations and major strategic decisions.
 
“Jensen is Nvidia; without him, the company loses its central, animating spirit,” Jay Goldberg, a senior analyst at Seaport Research Partners in San Francisco, told Al Jazeera.
 
He said the organisation was built around Huang and that replacing him would be extremely difficult, both organisationally and in terms of personality.
 
It remains unclear whether Nvidia has a formal succession plan, while analysts see few obvious candidates who could take over from Huang.
 
Dan Ives, senior managing director at Yorkville Ives, described Huang as the company’s “hearts and lungs” and said investors would closely examine any potential successor.
 
In a note to clients, Ives estimated Nvidia’s value at $300 per share with Huang as CEO, compared with $225 without him.
 
He nevertheless expressed confidence that Nvidia would overcome the uncertainty and continue to play a central role in the AI revolution.
 
Ives said Huang could not be replaced by another chief executive or an interim leadership team, adding that the prospect of Nvidia moving forward without him had seemed almost unimaginable before the news emerged on Sunday.
 
Allegations of links to Chinese intelligence
Nvidia has faced growing scrutiny over the past week following reports that Huang had a relationship with a Chinese woman whom US intelligence officials allegedly believed had been recruited by China’s Ministry of State Security.
 
US officials have not presented evidence to substantiate the allegations involving the woman, identified as Alice Huang, a Chinese technology executive.
 
Alice Huang, a former executive at Singapore-based data centre company Megaspeed, has not publicly commented on the claims.
 
China’s Ministry of Foreign Affairs has rejected the allegations, describing them as “entirely groundless, speculative and intended to smear and malign China”.
 
On Sunday, Nvidia’s board announced that it had launched an investigation into whether Huang had been targeted as part of a foreign intelligence operation. At the same time, the board expressed confidence in his leadership.
 
Huang acknowledged being “unfaithful” to his wife and apologised to his family. He also pledged full cooperation with the investigation, saying he remained committed to protecting Nvidia and US national security.