Nvidia's Board Of Directors Is Deciding The Fate Of CEO Huang Amid A New Scandal
- 12.11.2026, 13:42
Following this news, the company's stock fell by more than 8%.
Nvidia's board of directors met on Wednesday evening to discuss the possible removal of CEO Jensen Huang from his position, Reuters reported (translation — The Moscow Times.
Nvidia’s stock fell by more than 8% in after-hours trading after The Wall Street Journal first reported that the company was preparing to fire Huang. If the stock price does not rebound during the upcoming trading session, Nvidia’s market capitalization will have fallen by approximately $600 billion since the board of directors announced the launch of an investigation into the CEO’s ties to businesswoman Alice Huang, who is suspected of spying for China.
According to Nvidia’s bylaws, Huang can be removed from office by a majority vote of the 11-member board of directors, “with or without cause.”
Nvidia did not immediately respond to a request for comment regarding the board meeting, which lasted late into the night.
“The market is beginning to price in the resignation of Nvidia’s co-founder as a likely scenario, rather than as a downside risk,” said Armina Rosenberg of Minotaur Capital, which holds shares in Nvidia. “Losing Jensen would be a real blow.”
NO OBVIOUS SUCCESSOR
Huang’s potential departure could leave a leadership vacuum at Nvidia: as one of the company’s founders, he has led it for more than three decades, transforming it into a leading microchip supplier at the center of the global AI boom and the technological rivalry between the U.S. and China.
Huang, 63, who owns approximately 3.6% of Nvidia’s shares, has no obvious successor. He runs the tech giant using an unusually flat corporate structure, in which dozens of managers report directly to him, underscoring the extent of his personal control over the company.
“Jensen Huang is a rock star in the industry. He is known for his outspoken manner; his name has become synonymous with the Nvidia brand, and it would be very difficult to replace a leader like him,” said Anna Wu, founder of the Sydney-based research firm Floodlines Research.
Fears surrounding this development were one of the reasons behind the sell-off of the tech giant’s shares.
Bloomberg reported on Wednesday, citing a source familiar with the matter, that Nvidia’s board of directors is working with an outside firm to identify potential candidates to replace Huang.
Market speculation on who might lead Nvidia if Huang were to step down ranged on Wednesday from René Haas, CEO of rival chipmaker Arm, and Nvidia veteran Jeff Fisher, who has worked at the company for 32 years, to one of Huang’s two children, who also hold executive positions at Nvidia.
However, many analysts and investors believe that the two most likely candidates for the position, at least in the near term, are Ian Buck, one of Nvidia’s key engineers, and the company’s CFO, Colette Kress.
According to Rosenberg of Minotaur Capital, CFO Colette Kress, who has held this position for over a decade, would be the natural choice to serve as interim CEO, but the more important question is who will lead Nvidia’s technology strategy in the long term.
On the Polymarket prediction betting platform, the probability of Huang stepping down or being ousted by the end of the year has risen to 88%. Market participants consider Ian Buck, head of Nvidia’s data center customer division, to be the leading contender for his position.
Meanwhile, the crisis stemming from the scandal surrounding Huang erupted just a few days before Nvidia’s quarterly earnings report—the company is scheduled to release its financial results and forecasts on November 17.
The New York Times reported earlier on Wednesday, citing five sources, that Huang also had an extramarital affair with a female Nvidia executive who reported directly to him. According to the newspaper, the woman in question is Kimberly Powell, Nvidia’s vice president of healthcare.
Nvidia and Powell did not immediately respond to requests for comment. Reuters was unable to immediately confirm this information.