Jensen Huang Faces Possible Ouster After Second Affair Allegation; Nvidia CEO Reportedly Involved In Relationship With Company's VP

Nvidia CEO Jensen Huang is facing mounting pressure over allegations of two extramarital relationships, with the company's board reportedly preparing to discuss his future at the helm of the nearly USD 4 trillion chipmaker. The latest controversy follows a report alleging that Huang had a relationship with a senior Nvidia executive, adding to scrutiny over his reported ties to a Chinese businesswoman suspected by US intelligence of working for Beijing.

According to a Reuters report citing the Wall Street Journal, Nvidia's board was preparing to meet on Wednesday to determine Huang's future and was considering removing him as CEO. The reports have raised concerns about leadership stability at the company, which Huang co-founded in 1993 and has led for more than three decades.

Huang Involved In Affair With Nvidia's VP

The latest allegations emerged after The New York Times reported that Huang, 63, had an extramarital relationship with Kimberly Powell, Nvidia's 48-year-old vice president of healthcare, who reportedly worked under him. The newspaper cited five people who had worked at the company.

Two former Nvidia employees reportedly said they had seen Huang and Powell being affectionate at a hotel in San Jose during a conference in March. A bystander allegedly recorded the two before Huang's security team intervened.

Earlier Allegations Involving Chinese Businesswoman

The controversy first came into focus following reports about Huang's alleged relationship with Alice Huang, a Chinese businesswoman whom US intelligence officials have reportedly linked to facilitating shipments of Nvidia chips to Chinese companies.

Nvidia's independent directors have launched an investigation into whether Huang was targeted by a foreign intelligence operation. The inquiry is being overseen by independent directors with assistance from outside legal counsel. The board had earlier expressed confidence in Huang and said it had no reason to believe that Nvidia's confidential information or US national security had been compromised.

In a message to employees on Sunday, Huang acknowledged being unfaithful to his wife and accepted "full responsibility", without providing details about the relationship.

US lawmakers have also sought answers from the Nvidia chief over his alleged links to the Chinese businesswoman and claims that information may have been passed to Beijing. Huang could face a congressional subpoena if he does not respond to a request for a closed-door briefing. US President Donald Trump has publicly backed Huang, describing him as 'an honorable guy' who had done an amazing job for our country.

Leadership Concerns & Market Reaction

A possible departure could create uncertainty at Nvidia, which has no clearly established successor. Huang owns approximately 3.6 per cent of the company's shares and maintains close control over its operations, with dozens of executives reporting directly to him. Bloomberg has reported that the board is working with an outside firm to identify potential successors.

The reports of a possible ouster rattled investors, with Nvidia shares falling around 8 per cent in after-hours trading on Wednesday. The company has reportedly lost hundreds of billions of dollars in market value amid the growing controversy and wider concerns over its leadership.

Shares of rival chipmakers AMD and Broadcom, meanwhile, gained around 4 per cent and 3 per cent, respectively, in after-hours trading, as investors assessed whether prolonged uncertainty at Nvidia could benefit competitors.

Despite the market reaction, analysts believe demand for Nvidia's artificial intelligence processors is unlikely to weaken immediately. However, concerns remain over the wider ecosystem of companies and investments linked to the chipmaker, whose financing arrangements and investments have helped support several businesses that are also its customers.

Huang founded Nvidia in 1993 alongside Curtis Priem and Chris Malachowsky. The company initially developed graphics processors for computer gaming before its CUDA software expanded their applications into general computing and, eventually, artificial intelligence. The possible removal remains a reported board consideration, not a confirmed decision. The allegations concerning the two relationships have not been independently established.