Washington [US], November 12 (ANI): Nvidia shares fell more than 8 per cent in after-hours trading after reports emerged that the company's board of directors is preparing to remove Chief Executive Officer Jensen Huang amid an investigation into his personal relationships and their possible implications for the chipmaker, according to a report by CBS News.
The shares declined to USD 159.51, extending a fall that has wiped out more than USD 450 billion from the company's market value since Nvidia announced an investigation into Huang's conduct on November 8, the report said.
According to CBS News, which cited sources familiar with the developments, the Trump administration is aware of the board's plans. The Wall Street Journal was the first to report that board members were preparing to remove Huang.
The developments come amid scrutiny over Huang's alleged relationships with two women, including Alice Huang, a Chinese business executive suspected by US intelligence agencies of having links to China's Ministry of State Security.
Huang had acknowledged being unfaithful to his wife in an internal message to employees on Sunday and apologised to his family. Nvidia subsequently appointed law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into the allegations, according to the previously reported developments.
The controversy has also raised questions about the company's code of conduct, which warns employees against personal relationships that could create conflicts of interest. CBS News reported that corporate governance experts believe the alleged relationship could violate the company's policy.
The report said Nvidia's 11-member board includes Huang, while the other directors are designated as independent members in a regulatory filing.
Huang co-founded Nvidia in 1993 and has become one of the most prominent figures in the artificial intelligence industry, with the company's advanced processors powering the development of AI systems.
His possible departure could pose a major challenge for the company, particularly as Wall Street analysts see no obvious successor to replace him, CBS News reported.
"The news is obviously negative, as Jensen is (arguably) the most prominent executive at the most prominent company sitting at the center of the world's most important industry," Adam Crisafulli of Vital Knowledge said in a report cited by CBS News.
The controversy is also drawing scrutiny in the US Congress, where lawmakers are expected to question company executives over concerns that Nvidia chips could be reaching China through other countries. (ANI)
Nvidia shares tumble over 8% as board weighs Jensen Huang's removal
