Nvidia's board is preparing to remove co-founder and CEO Jensen Huang, the Wall Street Journal reported on Wednesday, according to a report that sent the chipmaker's shares sharply lower in after-hours trading.
The stock fell 8.61% to $158.78 after the close, after ending the regular session 2.87% higher at $173.73. The Journal reported that the board could meet as soon as Wednesday to decide Huang's future.
Second report preceded board news
The Journal's report came minutes after the New York Times said Huang had an extramarital relationship with Kimberly Powell, Nvidia's vice president of health care. Powell joined the company in 2008 and has led the unit since 2017, according to the report. The pair were reportedly seen together at a San Jose hotel in March.
Nvidia and Powell did not respond to requests for comment, according to the report.
Earlier admission and ongoing investigation
The new report follows Huang's admission days earlier of an affair with former Megaspeed executive Alice Huang, whom US intelligence reportedly suspects of spying for China.
The board's law firm, Wachtell Lipton, is already investigating, according to the report.
Earnings date ahead
Nvidia is scheduled to report earnings on November 17.
- After-hours move: shares down 8.61% to $158.78
- Regular session close: up 2.87% at $173.73
- Board action: possible meeting as soon as Wednesday on Huang's future
- Outside counsel: Wachtell Lipton already investigating
- Next earnings: November 17
