Nvidia shares fall 7% as board of directors considers Huang's resignation

Shares of Nvidia, a leading maker of artificial intelligence chips, fell 7% on Thursday amid a corporate scandal surrounding CEO Jensen Huang. Investors are waiting for the decision of the board of directors regarding his further fate in office.

On Sunday, Huang admitted to an extramarital affair with Alice Huang, a top manager at the cloud company Megaspeed. According to foreign media, US intelligence believes that the woman may be connected to the Chinese special services. On Wednesday, it became known about another affair of the CEO of Nvidia - with Kimberly Powell, the company's vice president for health care, who reports directly to Huang.

According to confirmed information, Nvidia's board of directors met on Wednesday to discuss the possible removal of Huang as CEO. An official decision has not yet been made.

For investors, the situation is critical: Jensen Huang has led Nvidia since the company was founded in 1993 and is considered a key figure in its meteoric rise on a wave of demand for artificial intelligence chips. Any uncertainty about his future at the company is perceived by the market as a risk to the continued growth of the business, which explains the sharp drop in the stock.

In addition to the reputational risks, the second affair adds to the question of corporate governance - Powell was directly under Huang, which may indicate a conflict of interest at the highest level of the company.