Nvidia Falls Up to 9.6% After NYT Reports Huang Affair With VP
Nvidia dropped as much as 9.63% after hours from a $173.73 close after The New York Times reported a second alleged Jensen Huang relationship, with a direct report. The WSJ says the board is preparing to remove him. Earnings land Nov. 17.
Nvidia shares dropped between 7.5% and 9.63% in after-hours trading Wednesday after The New York Times reported a second alleged relationship involving CEO Jensen Huang. This one is with Kimberly Powell, the company's vice president of health care, who reports to him.
The size of the drop depends on the quote. One print puts NVDA at $160.75 at 5:34 p.m. ET, down 7.5%. Another shows $157.00, down 9.63%. Both measure against the same $173.73 regular-session close, which was up 2.92% on the day. The gap likely reflects quote timing; none of the reports explains it.
This builds on our earlier coverage, which tracked a two-day loss of $430B and a senator's call for Huang to resign.
Board removal reported
Minutes after the Times story, The Wall Street Journal reported that Nvidia's board is preparing to remove Huang, citing people familiar with the matter. The board could meet as soon as today. No decision or official announcement has been made, and the report rests on anonymous sources.
What the Times reported
The Times cited five people who worked at Nvidia, all speaking anonymously. Nvidia declined to comment. Powell did not immediately respond to the Times's request for comment. Huang, reached by phone, told the paper:
"I don't think you should be talking to me directly"
Jensen Huang, per the New York Times
He then hung up.
Two current or former workers told the Times that Huang and Powell were captured on video being affectionate at a San Jose hotel during a company conference in March. The Times said it had not seen the video. Three people briefed on the matter said a bystander recorded it, and that Huang's security sequestered the person and offered a nondisclosure agreement.
The Times also noted Nvidia's code of conduct tells employees to avoid conflicts, including those from "personal relationships." That makes this a workplace conflict-of-interest question, separate from the foreign-intelligence concerns behind the board's existing investigation.
Board stance and succession
On Nov. 8 the board opened an independent investigation and said it had "no reason to believe that either national security or NVIDIA secrets were compromised." It also expressed "confidence in Jensen and his leadership team." Huang acknowledged infidelity in a Nov. 8 message to employees. On Nov. 10 the independent directors retained Joon H. Kim and Wachtell, Lipton, Rosen & Katz to run the probe.
Succession is unclear. Nvidia has disclosed no plan, and Wedbush analyst Dan Ives told Newsweek:
"There is no succession plan,"
Dan Ives, Wedbush
Analysts have named CFO Colette Kress as a possible interim leader. Nvidia reports third-quarter earnings on Nov. 17, six days away. Any leadership change would land just before the print.
