Nvidia is once again in the eye of the storm, and just as the case of the alleged Chinese spy seemed to be cooling down, a new scandal has hit the company. And this time the blow is aimed directly at the top: according to The Wall Street Journal, which reported this Wednesday, the chipmaker's board is preparing to remove its founder and CEO, Jensen Huang.
This comes after a new extramarital affair of the executive came to light.
According to people familiar with the situation cited by the WSJ, the board is preparing to meet this very Wednesday to decide the executive's future.
The news sank the stock in after-hours trading. Nvidia shares on the Nasdaq were down 7.48%, to US$160.74, as of 7:51 p.m. Chile time, according to TradingView data. In the regular session, the stock had closed up 2.87%, at US$173.73.
Huang, Nvidia's co-founder, is seen by many as the visible face of the race for artificial intelligence, the WSJ recalled. The company supplies the key component of what, according to the newspaper, many consider the next industrial revolution.
The WSJ report came out minutes after The New York Times published that Huang had an extramarital relationship with another executive at the company. The WSJ confirmed that second relationship with an employee based on a person familiar with the matter.
According to the New York newspaper, it is...
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Nvidia is once again in the eye of the storm and, just as the case of the alleged Chinese spy seemed to be cooling down, a new scandal is shaking the company. And this time the blow strikes directly at the top: according to The Wall Street Journal, which reported this Wednesday, the chipmaker's board is preparing to remove its founder and CEO, Jensen Huang. This comes after a new extramarital relationship of the executive came to light. According to people familiar with the situation cited by the WSJ, the board is preparing to meet this very Wednesday to decide the executive's future. The news sank the stock in after-hours trading. Nvidia shares on the Nasdaq were down 7.48%, to US$160.74, according to TradingView data. In the regular session, the stock had closed up 2.87%, at US$173.73. The WSJ report came out minutes after The New York Times published that Huang had an extramarital relationship with another executive at the company. The WSJ confirmed that second relationship with an employee through a person familiar with the matter. According to the New York paper, it is Kimberly Powell, Nvidia's vice president of healthcare. According to her profile on the company's website, Powell is "responsible for the company's global healthcare business, including the hardware and software platforms for accelerated computing, AI, and visualization that power the medical imaging, life sciences, drug discovery, and healthcare analytics ecosystem." According to the Times, Huang and Powell were reportedly caught on cameras in an affectionate manner at a hotel in San Jose, California, in March. It is worth recalling that this Sunday, Nvidia's board of directors, the American artificial intelligence chip giant, announced it would launch an "independent investigation" into the romantic relationship of CEO Jensen Huang with Alice Huang (no relation), an executive at Megaspeed who is suspected of possibly being a Chinese spy. This caused a sharp drop in the stock on Monday and Tuesday, a trend that just this Wednesday had managed to reverse. If a drop of this magnitude materializes, the chip company will be displaced by Microsoft, relegating it to third place among the world's most valuable companies. NEWSLETTERPM PulseMonday to Friday, 12:30 PMThe most relevant news on markets, companies, and business: timely information, context, and content to make better decisions. By subscribing, you are accepting La Tercera's Terms and Conditions and Privacy Policies.