Jensen hangs on as Nvidia tumbles
NVDA•Nvidia shares fell more than 8% in after-hours trading as its board considered the future of CEO Jensen Huang amid two scandals. S&P 500 futures fell 0.4% and Nasdaq futures dropped 1%.
1. Board considers Huang’s future
Nvidia’s board met late Wednesday to decide the fate of founder and CEO Jensen Huang, a source told Reuters. Huang is facing two separate scandals: he reportedly had an affair with an executive who reported to him, and the board is investigating his relationship with a businesswoman alleged to be a Chinese spy.
2. Shares and futures fall
Nvidia shares fell more than 8% at one point in after-hours trading amid broker downgrades, weighing on U.S. equity futures in Asia. S&P 500 e-mini futures fell 0.4% and Nasdaq e-mini futures dropped 1%.
3. Succession and export questions
Nvidia has no clear succession plan. Ian Buck, an architect of its CUDA software system, and CFO Colette Kress are among possible interim CEO contenders. Democratic senators urged the Trump administration to preserve documents linked to Nvidia chip exports to China.
