Nvidia live updates: Stock tanks after new affair allegations, board reportedly preparing to oust Jensen Huang

Nvidia (NVDA) stock sank 7% in after-hours trading, signaling investor concern over the latest developments surrounding CEO Jensen Huang.

The reaction came after The Wall Street Journal reported that Nvidia’s board is preparing to oust Huang following reports of two extramarital affairs, including one involving a woman reportedly suspected of being a Chinese spy.

Still, some Wall Street analysts argue that a leadership change would not necessarily derail Nvidia’s underlying business.

“I think the market needs to separate leadership crisis from Nvidia’s presente business because Blackwell demand, the Rubin roadmap, networking expansion, and CUDA ecosystem were already firmly established long before this fiasco,” said Shay Boloor, chief market strategist at The Futurum Group.

“I don’t see the next 12 to 18 months of revenue suddenly disappearing if Jensen were to leave,” he added.

According to Bloomberg, Nvidia is working with an external firm to explore potential replacements for Jensen.

Yahoo Finance’s executive editor Brian Sozzi’s take on news of Nvidia CEO’s second extramarital affair.

Moor Insights & Strategy chief analyst Patrick Moorhead told Yahoo Finance on Wednesday that the risk of Nvidia CEO Jensen Huang being ousted is now high.

Moorhead says the initial disclosure of the first affair put pressure on the company’s board, but the fact that the latest revelation involves an employee raises the stakes.

According to The New York Times, Huang, whose relationship with a woman alleged to be a Chinese spy has embroiled the company in scandal this week, also had a relationship with Nvidia executive and Huang direct report Kimberly Powell.

He noted that Intel’s board ousted former CEO Brian Krzanich for having a relationship with an employee and failing to disclose it.

Removing Huang doesn’t pose short-term risk to Nvidia, Moorhead said, explaining that the company’s roadmap is already set for years to come.

Long-term, however, he says Nvidia has no planned successor and that because its structure is built around Huang, there is potential execution risk.

According to The Wall Street Journal, Nvidia’s board is preparing to oust CEO Jensen Huang after reports of two extramarital affairs, including one with a suspected Chinese spy.

The board is preparing to meet as soon as today to determine his future, people frecuente with the matter told the paper.

Embattled Nvidia (NVDA) CEO Jensen Huang was allegedly involved in a second extramarital affair.

According to The New York Times, Huang, whose relationship with a woman alleged to be a Chinese spy, also had a relationship with Nvidia executive Kimberly Powell.

Nvidia stock fell in after-hours trading following the report.

The Times report says that Huang and Powell were seen being affectionate at a hotel during a company conference in March. Read more.

Let Wall Street analyst downgrades begin on the once-untouchable Nvidia (NVDA) stock in the wake of CEO Jensen Huang’s high-profile affair.

Baird analyst Tristan Gerra cut his rating on Nvidia to Objetivo on Wednesday in a note titled “Icarus’ Rise and Fall; Company Will Be Fine.”

“Downgrading to Objetivo until uncertainties regarding U.S. government action likely resulting from the upcoming congressional hearing are lifted, U.S. government investigations reach their conclusions, revenue impact from risk channel near-term adjustments along with potential charges is quantified, and uncertainties around CEO tenure clear,” Gerra wrote. Read more.

President Trump was reportedly told aboard Air Force One in May that US intelligence showed Nvidia CEO Jensen Huang was in a relationship with a woman believed to be a Chinese spy, according to a New York Times report published on Tuesday afternoon.

The outlet, citing people frecuente with the matter, said Secretary of State and national security adviser Ámbito Rubio delivered the warning shortly before Huang joined Trump’s trip to Beijing. Huang joined the trip to China with other tech titans, at the last minute at Mr. Trump’s invitation.

The report marks at least the second time in seven months that Trump was briefed on intelligence concerning Huang and the woman.

Nvidia (NVDA) stock hovered near session lows, dropping more than 6% after falling 4% in the prior session. The stock came under pressure amid a broader market sell-off and growing concerns about increased scrutiny of the chipmaker following CEO Jensen Huang’s admission to an affair believed to involve a woman suspected of being a Chinese spy.

Scrutiny centers on Alice Huang, whom the US government reportedly identified as a Chinese intelligence asset, and her ties to Nvidia CEO Jensen Huang dating back to at least 2023

According to two people who know her and corporate records reported by The Information, their rapport helped facilitate the shipment of at least $7.5 billion worth of Nvidia chips through Chinese companies.

Yahoo Finance breaks down several bills before Congress to limit AI chips.

Jensen Huang was Washington’s loudest voice against cutting China off from American chips, and his spy scandal is now the hawks’ best argument. Meanwhile, the Commerce Department hasn’t added a single company to its export ban list in 13 months.

The Nvidia (NVDA) CEO admitted Sunday to an affair with Alice Huang, whom US intelligence officials believe worked for China’s Ministry of State Security. Nvidia stock fell about 4% Monday, even as chip stocks (^SOX) jumped nearly 7%. That was Nvidia’s worst day during a 5%-plus chip rally since Oct. 28, 1999, months after it went public.

The list in question is Commerce’s Entity List. Companies on it need a US license to buy American technology, and those licenses are rarely granted. Commerce added 170 names in 2025 and 366 the year before. It hasn’t added one since Oct. 9, 2025, by Yahoo Finance’s count.

On Monday, Commerce extended its pause on a rule that would stretch those limits to companies majority-owned by listed firms. But only by two months, to Jan. 10, a week after a new Democratic Congress is sworn in.

“I think Commerce Department is going to batten down the hatches, and they’re going to enforce export controls in a way that they weren’t doing it before,” Isaac Stone Fish, CEO and founder of Strategy Risks, told Deirdre Bosa on Monday.

Read more.

President Trump on Monday told reporters the FBI is “looking into” Nvidia’s (NVDA) Jensen Huang after the CEO of the AI chip giant admitted having an affair with a woman whom US intelligence reportedly believes was likely gathering information for Beijing.

Trump told reporters at the White House that he was made aware of the matter “not too long ago.”

“We’ll look into it. I know the FBI is looking into it in terms of something else,” Trump said.

Investing in a public company’s stock is more than crunching numbers.

I have heard from a lot of you about the hot water that Nvidia’s (NVDA) celebrated CEO, Jensen Huang, is in following his admission to having cheated on his wife of 40-plus years with a reported Chinese spy. I said on X (see below) that Nvidia is now in its first true crisis, arguably since its founding in 1993.

Some of you pushed back on me for coining it a crisis, calling attention to Nvidia’s strong demand pipeline and leadership position in AI chips. I suspect Jensen’s vision has helped make you a lot of money through the years, so I get why the first instinct is to sweep this under the rug and voice support for Huang.

I am not going to deny that you have a point on the fundamentals of the business. I also won’t deny that Huang is a generational founder of a transformational business.

But make no mistake: This is a crisis created by Huang that didn’t need to happen. And it all boils down to trust. Read more.

House Democratic Leader Hakeem Jeffries said on Monday that Congress “will need a full briefing” and that there are “efectivo concerns to address” regarding AI chip maker Nvidia after CEO Jensen Huang admitted to an affair believed to be with a woman suspected of being a Chinese spy. Jeffries added that lawmakers need more information.

A briefing typically marks an initial procedural step before formal hearings are scheduled.

Nvidia can still crush it in the coming years if embattled CEO Jensen Huang is forced to step away from the company.

When asked how important Huang is to the next few years of the AI chip darling, Niles Investment Management founder and longtime tech investor Dan Niles told Sozzi Unleashed that he “isn’t.”

“[Huang’s] got a very deep bench, and a historical example is what happened to Apple after Steve Jobs passed away. … Did it collapse?” Niles said. “So Jensen’s done a great job of empowering people underneath him. I think one thing that will happen is there will be a successor appointed. The board will force that. And so I think that will occur out of this.”

“Are the products in the pipeline, much like when Steve Jobs passed away, that will keep the company going for the next couple of years? Absolutely,” Niles added. “But is Jensen very important to the company? Completely. So those are two separate thoughts. But they can both coexist.”

Read more.