Nvidia shares fell sharply in after-hours trading on Wednesday 11 November after reports that the company's board was meeting to decide the future of co-founder and chief executive Jensen Huang.

The shares dropped 8.6% to $158.84 in late trading, from the day's closing price of $173.73, after The Wall Street Journal reported that directors were preparing to remove Huang. Bloomberg reported a fall of about 10% in late trading as investors weighed the prospect of the world's dominant supplier of artificial intelligence chips without the man who built it.

What the reports say

The Wall Street Journal reported, citing people familiar with the matter, that Nvidia's board was preparing to oust Huang after he had two extramarital affairs, including one with a woman alleged to be a Chinese spy and another with an employee who reported to him. The New York Times reported that Huang had a relationship with Kimberly Powell, Nvidia's vice president of healthcare, who reports to him.

Reuters reported that Nvidia's board was meeting late on Wednesday to decide whether to remove Huang, citing a source familiar with the matter. Bloomberg reported that directors had been working with an outside firm to identify possible replacements and were considering whether to appoint an interim chief executive while they search for a permanent one. No final decision had been publicly confirmed at the time of reporting.

A board investigation already under way

The board had already opened an independent investigation into whether Huang was targeted by a foreign intelligence operation. Independent directors retained Joon H. Kim, a former acting US attorney for the Southern District of New York and a partner at Wachtell, Lipton, Rosen and Katz, to assist with the inquiry, which is examining whether Nvidia's confidential information, business interests or national security obligations were compromised.

Nvidia and Huang were also named in a proposed shareholder class action filed in federal court in San Jose on 9 November. In Washington, three House Republican committee chairmen have asked Huang to brief them behind closed doors on 18 November, and Fox Business reported that Congress is prepared to subpoena him to testify about his involvement with the woman suspected of acting as a Chinese spy.

A brutal week for the world's most valuable chipmaker

The sell-off capped a punishing stretch for Nvidia. Bloomberg reported that the shares had fallen about 29% from their 6 October peak, cutting the company's market value from around $5.8 trillion to about $4 trillion. Reuters reported that the company had lost more than $300 billion in market capitalisation since the story broke. The shares had actually risen about 3% in regular trading on 11 November before the after-hours plunge.

The wider market felt the shock immediately. Nasdaq-100 futures fell about 1% and S&P 500 e-mini futures slipped 0.4% in after-hours trading, and Asian stocks wobbled at the start of trading on Thursday 12 November, with Japan's Nikkei 225 opening higher but quickly giving back gains as chip stocks turned lower.

What happens next

Nvidia is scheduled to report third-quarter results on 17 November, the day before Huang is due to meet the House committee chairmen. Huang has led Nvidia since he co-founded it in 1993 and transformed it from a graphics chip maker into the central supplier of the AI boom, and there is no obvious successor. Investors will now watch whether the board acts before earnings, who it names if it does, and whether the company's biggest customers keep faith with a chipmaker in the middle of a leadership crisis.

Frequently asked questions

Why did Nvidia shares fall after hours on 11 November? The shares dropped after The Wall Street Journal reported that Nvidia's board was preparing to remove chief executive Jensen Huang, and Reuters reported the board was meeting that evening to decide his future.

Has Nvidia removed Jensen Huang? No. At the time of reporting, no final decision to dismiss Huang had been publicly confirmed by the company or the board.

When does Nvidia report earnings? Nvidia is scheduled to report its fiscal third-quarter results on 17 November 2026.

Sources: Bloomberg via Moneyweb; Reuters. This article reports what those outlets reported and does not present unconfirmed allegations as established fact.; Reuters