Nvidia shares fall 8.6% amid reports of Huang’s possible removal
Nvidia’s Nasdaq-listed shares fell 8.62% to $158.76 in after-hours trading Wednesday, reversing gains made during the regular session, Qazinform News Agency reports.
According to Stock Analysis, the shares were trading at that level at 7:59 p.m. Eastern time, after closing the regular session at $173.73, up 2.87%.
The decline came as Anadolu reported that Nvidia’s board was preparing to remove CEO Jensen Huang. People familiar with the matter said that directors could meet as early as Wednesday to decide his future.
The reported move followed fresh allegations of an affair involving a company executive. According to Anadolu, Huang allegedly had a relationship with Kimberly Powell, Nvidia’s vice president of healthcare.
The allegation has not been officially confirmed in the company statements reviewed for this report, nor have directors publicly confirmed that it prompted a move to dismiss Huang.
Nvidia’s code of conduct requires employees and board members to avoid actual or potential conflicts between personal interests and their obligations to the company, identifying personal relationships as a possible source of such conflicts. It also states: “We promptly investigate reports of misconduct.”
Earlier, Qazinform reported that Nvidia had hired U.S. law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into reports that Huang had been targeted by foreign intelligence.
