Nvidia board considers replacing CEO Jensen Huang amid affair allegations

Nvidia's board is investigating CEO Jensen Huang over reported extramarital affairs, including with a businesswoman suspected of ties to Chinese intelligence, and considering his removal. The scandal has erased about $430 billion in market value.

The affair of Nvidia CEO Jensen Huang turned within days from a personal matter into a corporate crisis, with a cumulative market value wipeout of approximately $430 billion from the company's value. The board convened a discussion on Huang's removal, and the stock fell more than 8% in after-hours trading. Bloomberg commentator Matt Levin raised the question of whether this is the most expensive extramarital affair in human history. For comparison, Jeff Bezos' affair cost him $38 billion in the divorce settlement. However, the article notes that not all of the stock decline is attributed to the affair, as Nvidia had prior concerns regarding AI investments. Huang himself holds about 3.6% of the company's shares, so the hit to his holdings amounts to about $15.5 billion on paper.