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A Jensen Huang ouster is now a real possibility at Nvidia. The Wall Street Journal reported on November 11 that the board is preparing to remove its co-founder and CEO over two alleged affairs. No final decision has been made. The board already opened an independent investigation on November 8, and directors could meet as soon as this week to talk about his future.
Huang has led Nvidia for 33 years. He is its first and only CEO.
What has been reported so far
Here is what the reports say, and who said it?
- The board is preparing to act. The WSJ says directors are getting ready to remove Huang. The paper also says nothing is final.
- Two relationships are in play. One is with Alice Huang, a former executive at Taiwanese firm Megaspeed. Reports say she is suspected of being a Chinese intelligence asset. She is not related to Jensen Huang.
- A second allegation surfaced. The New York Times, citing five people who worked at Nvidia, reports a relationship with a senior executive who reports directly to him. Nvidia has not confirmed this.
- Nvidia’s stock dropped. Shares fell about 8% in after-hours trading once the reports landed.
Treat all of this as reported, not proven.
What a Jensen Huang ouster could mean for Nvidia
Nvidia would need a new leader fast. CFO Colette Kress could step in as interim CEO while the board searches. Co-founder Chris Malachowsky sits on the board, but he has not held an executive role in a long time, so he is an unlikely pick.
Investors are also worried about the money. Reuters, cited by Engadget, said Nvidia was on track to lose more than $470 billion in market value over two days.
Product plans should not change overnight. Chips like the leaked RTX 60 series get planned years ahead of any CEO change.
There is a precedent. Intel pushed out CEO Brian Krzanich in 2018 after a relationship with an employee broke its rules. Nvidia’s code of conduct flags personal relationships as possible conflicts. It does not clearly ban everyone. So it is unclear whether Huang broke a company rule.
How the Nvidia scandal unfolded
- October 9: The New York Times reports a link between Nvidia and Megaspeed. Nvidia calls it routine business.
- October 29: The Times publishes a feature saying Huang became the target of a suspected Chinese intelligence operation.
- November 8: Huang admits to an affair. The board opens an independent investigation.
- November 10: A shareholder files a class action. It says Nvidia and Huang misled investors about the relationship.
- November 11: The WSJ reports the board is preparing to remove him.
What you should do
Gamers do not need to act. No report links this to GeForce supply or pricing. If you are shopping for a card right now, this Radeon vs GeForce comparison still applies.
Investors should wait for an official board statement. One report is not a decision.
Everyone else can follow the board’s next move. A Jensen Huang ouster would be one of the biggest leadership changes in tech.
Update: This story is still developing. We will update this post when Nvidia’s board or the company confirms anything.
Sources: Tom’s Hardware (citing the Wall Street Journal and New York Times), Engadget
