Nvidia Board Moves to Oust Jensen Huang After Second Affair 2026

Nvidia's board of directors is reportedly preparing to remove CEO Jensen Huang following revelations of a second extramarital affair, according to a Wall Street Journal exclusive. The news sent Nvidia shares tumbling more than 8% on Tuesday, marking one of the most dramatic turns for the AI chip giant.

The affair in question involves Kimberly Powell, vice president of health at Nvidia, as reported by The New York Times. This comes on the heels of a prior relationship with alleged Chinese spy Alice Huang, which had already raised eyebrows among investors and regulators.

Why the Board Changed Its Stance on Jensen Huang

Just weeks ago, Nvidia's board publicly backed Jensen Huang, dismissing the first affair as a personal matter. But the second revelation has shifted the narrative from support to active consideration of dismissal. According to sources cited by the WSJ, the board now views the pattern of behavior as a governance risk that could undermine investor confidence and invite regulatory scrutiny.

The timing couldn't be worse. Nvidia is in the middle of a massive expansion, supplying AI chips to data centers worldwide and navigating complex export controls. A leadership vacuum at the top could disrupt partnerships and strategic initiatives.

The Succession Problem: No Clear Number Two

One of the board's biggest challenges is that Nvidia lacks a clear successor to Jensen Huang. He has been the face of the company for decades, and his deep technical expertise and relationships with key customers like Microsoft, Google, and Amazon are not easily replicated.

Internal candidates include several long-tenured executives, but none have the public profile or strategic vision that Huang has demonstrated. The board is reportedly considering both internal and external options, but no decision has been made.

Key Takeaways

• Nvidia shares fell over 8% following the WSJ report on a second affair and potential ouster.
• The board is weighing dismissal after previously supporting Huang.
• No clear successor exists, creating uncertainty for the company's future.
• The scandal adds to existing governance concerns from the first affair.
• Investors should watch for official board statements and any SEC filings.

How the Scandal Escalated So Quickly

The situation has snowballed from a personal indiscretion into a full-blown corporate crisis. It began with the revelation of Huang's relationship with Alice Huang (no relation), who was later accused of espionage. Then came the Kimberly Powell affair, which proved to be the final straw for the board.

Meanwhile, Nvidia has been under pressure over its dealings with China. A Singapore-based neocloud called Megaspeed was suspected of funneling banned Nvidia chips to China for AI training. An investigation into a company executive followed, and Huang himself had been pushing hard for Nvidia to sell to China to capture a slice of that massive market.

His lobbying was so intense that it reportedly persuaded former President Donald Trump to soften his stance on export restrictions. But now, with Huang's leadership in question, those efforts may unravel.

What This Means for Nvidia's Business

Nvidia is the world's most valuable chipmaker, powering the AI revolution. Any sign of instability at the top could have ripple effects across the tech industry. Customers may hesitate to commit to long-term contracts, and partners could seek alternative suppliers.

The board's decision will also be scrutinized by regulators, especially given the national security implications of the Alice Huang connection. If Huang is removed, the company will need to reassure stakeholders that its technology and trade compliance remain intact. The background to this story is set out in Nvidia Board Weighs Ousting CEO Jensen Huang as Stock Plunges. A related thread runs through Nvidia Board Weighs Ousting CEO Jensen Huang as Shares Plunge. Earlier coverage in Nvidia CEO Jensen Huang Reportedly Targeted by Chinese Spy shows how the argument developed.

What to Watch Next

The board is expected to meet in the coming days to discuss Huang's future. Investors should watch for any official announcements, SEC filings, or changes in executive responsibilities. The company may also face questions from analysts on its next earnings call. A closer look at the same subject appears in Jensen Huang Affair: Nvidia CEO Espionage Scandal Explained. Anyone following the wider picture can start with Alice Huang: The Ex-Megaspeed Exec Rocking Nvidia and Jensen Huang. The same theme surfaces in Nvidia CEO Espionage Scandal: FBI Investigation Deepens, which takes a different angle.

For now, the AI world is holding its breath. Jensen Huang built Nvidia into a powerhouse, but his personal decisions may cost him the job. Context on how this played out before sits in Alice Huang: The Woman Linked to Nvidia CEO Jensen Huang. A companion piece, Jensen Huang Affair: Why Trump Ignored Security Warnings, approaches the same subject from another angle.