Nvidia's board convened on Thursday to deliberate the future of chief executive Jensen Huang, following a New York Times report that the founder engaged in a second extramarital relationship with an employee. Earlier coverage linked Huang to a woman identified by U.S. intelligence as a Chinese spy. The company has not released an official comment, while CNBC confirmed the board is weighing a possible removal after more than three decades at the helm.
The chipmaker's shares have slipped sharply this week, falling 4.3 percent on Monday and 5.5 percent on Tuesday after Huang dominated headlines. A modest rebound of 2.9 percent on Wednesday was erased by a pre-market decline of roughly 5.4 percent on Thursday, leaving the stock down about seven percent overall.
Tech-focused investor Ives wrote that “the writing is on the wall” regarding Huang’s tenure and warned of a fluid situation over the next 48 hours. He valued Nvidia at $300 per share with Jensen in charge and $225 per share without him, suggesting a steep discount if the board decides to replace the founder.
Citi analysts responded by lowering their price target to $225, down from $285. In a separate note, analysts Malik and Sylla said a forced departure would “mark the end of an era,” noting Huang’s role in turning Nvidia into the dominant AI-infrastructure provider and the centrality of his vision to the company’s strategy and investor confidence.
The board is reportedly considering CFO Colette Kress as an interim chief executive while it evaluates external candidates, according to Thooft on CNBC’s Squawk Box Asia. Greifeld criticized the board’s succession planning, questioning whether Huang had misled directors, and argued that a new CEO would have time to set a strategic vision without altering existing chip development plans. Reyle added that the lack of a clear successor makes the stock appear uninvestable despite the broader AI trade remaining attractive.
Analysts at Haefele’s firm said the episode highlights concentration risk in the technology sector and reinforces the need for portfolio diversification as the AI market matures. While they maintain confidence in long-term compute demand and resilient earnings, they warned that Huang’s exit could destabilize Nvidia and potentially trigger a broader market correction.