Nvidia stock falls 8% after report board is preparing to oust Jensen Huang after second affair

Nvidia’s stock was down 8% after hours on Wednesday after new reports dropped concerning CEO Jensen Huang.

The Wall Street Journal reported the Nvidia board was preparing to remove Huang. Days earlier, the board said it was investigating whether Huang was the target of a foreign intelligence effort after the CEO acknowledged having an extramarital affair.

The New York Times also reported new allegations on Wednesday, saying Huang had a second extramarital affair with an executive at Nvidia who reports to him, citing five unnamed sources who worked at the company. The Times said the executive was Kimberly Powell, Nvidia’s vice president of health care.

Nvidia declined to provide a statement to The New York Times.

Other stocks with direct ties to Nvidia also seemed to move in response to Wednesday’s news.

CoreWeave, a cloud computing company that uses Nvidia chips and counts Nvidia as an investor, saw its stock drop over 4% after hours. Micron, which supplies memory used alongside Nvidia’s chips, was down nearly 3% after hours while Supermicro, which builds servers, was down nearly 5%. TSMC, which manufactures the chips Nvidia designs, was down over 2%.

On Sunday, Huang admitted to having an affair in a memo to employees and said he was cooperating with the board’s investigation. He did not name his affair partner. The New York Times had previously reported that US intelligence officials believed Alice Huang, a tech executive who had grown close to the CEO, was recruited to gather information for Beijing.

Huang, a Chinese national, has worked as an executive at Megaspeed, a cloud computing company in Singapore that was also an Nvidia customer.

Nvidia’s board hired Wachtell, Lipton, Rosen & Katz, an elite Wall Street law firm, to carry out the investigation, with partner Joon H. Kim, a former US attorney, tapped to lead it.

This is a developing story.