Nvidia board meets after second affair report, Reuters says

Nvidia’s board is meeting to decide chief executive Jensen Huang’s future, Reuters reported on 11 November, citing a source familiar with the proceedings. Its later report followed a Wall Street Journal account that directors were preparing to remove him.

The New York Times separately alleged a relationship with healthcare vice president Kimberly Powell, citing five people who worked at Nvidia. Reuters relayed the allegation while saying it could not immediately verify it. The board’s outcome remains to be announced.

The second report brings workplace governance into focus

The Times described Powell as reporting to Huang, bringing workplace governance into focus. Nvidia’s professional biography identifies Powell as the leader of its worldwide healthcare business, spanning medical imaging, life sciences and drug discovery.

If substantiated, a relationship within that hierarchy would require directors to examine disclosure, conflicts of interest and whether company policies were followed. Decisions over pay, promotion and assignments would be obvious areas for scrutiny. Those are governance questions arising from the report, rather than findings against either executive.

Huang acknowledged marital infidelity in his 8 November staff message, accepted responsibility and pledged to cooperate with the board’s investigation. That message named neither woman.

Independent directors have appointed outside investigators

Nvidia’s independent directors announced on 10 November that former acting US attorney Joon H. Kim and Wachtell, Lipton, Rosen & Katz would conduct the investigation. Their statement followed the board’s 8 November announcement of an inquiry into reports that Huang had been targeted by a foreign intelligence effort.

The earlier reporting concerned Alice Huang, a business executive whose alleged intelligence links have drawn scrutiny. Nvidia’s board expressed confidence in its chief executive and leadership team on 8 November. The later reports of possible removal show how quickly the leadership question has developed.

For background, our earlier report covers the investigation and congressional briefing request.

A handover would reach beyond the chief executive’s office

A Huang departure would make continuity of leadership a central business issue for Nvidia. He has led the company since its foundation in 1993. The practical test would be whether directors could give customers, staff and investors a clear account of who controls product decisions, major commercial relationships and the company’s strategy.

An orderly transition could distribute those responsibilities while keeping experienced executives in place. An abrupt departure could create uncertainty over authority, slow decisions or encourage rivals to approach important employees and customers. These are possible consequences of a handover, with their severity depending on the board’s arrangements.

The company also has a substantial operating business behind its founder. Nvidia reported second-quarter fiscal 2027 revenue of $96.2bn, including $89bn from Data Center, for the quarter ended 26 July. That revenue comes from products, software and customer demand supported by an organisation that would continue through a leadership change.

The investment question is how well that organisation could sustain delivery and win future business during a transition. A board announcement naming responsibilities and explaining continuity would help investors judge the risk.

The shares are already pricing in uncertainty

Nvidia shares were down 7.2% in after-hours trading at 7pm New York time on 11 November, CNN reported. They had fallen more than 9% earlier in the extended session. CNN’s dated account illustrates the speed and variability of the reaction.

A share price reflects expectations for future profits and the price investors will pay for them. A leadership crisis can reduce that valuation even while current chip shipments continue. If investors expect disruption, or demand a larger return for accepting management risk, the price can fall before the financial results show a change.

Reuters estimated about $600bn in Nvidia market value had been lost during the week, including the 11 November after-hours fall. Its later dispatch combines the week’s trading, including moves before the second-affair report. Market-value changes measure the repricing of shareholders’ stakes; they should be distinguished from cash spent by Nvidia.

17 November brings a test of the operating outlook

Nvidia has scheduled its next earnings call for 17 November, covering the fiscal third quarter ended 25 October. The company’s announcement sets the call for 5pm New York time.

Nvidia’s August outlook put third-quarter revenue at $108bn, plus or minus 2%, excluding Data Center compute revenue from China. Investors can compare the results with that benchmark, examine the next outlook and assess management’s explanation of customer demand and delivery.

The board’s leadership decisions will shape confidence in who runs Nvidia. The earnings release will provide a separate measure of how its business is performing. Together, they will give shareholders firmer grounds to assess the company’s next phase.