Nvidia Stock Crashes 8% as Board Reportedly Prepares to Remove CEO Jensen Huang

Key Takeaways

• Nvidia shares fell more than 8% in after-hours trading following reports that its board was considering removing CEO Jensen Huang.
• Reuters reported that the board met on Wednesday to discuss Huang’s future, but Nvidia has not announced a decision.
• Nvidia’s latest official statement said the board had confidence in Huang while conducting an independent investigation into a possible foreign intelligence effort.
• The leadership uncertainty comes days before Nvidia releases its fiscal third-quarter results on November 17.

Nvidia stock plunged in extended trading after reports that the chipmaker’s board was preparing to consider removing founder and CEO Jensen Huang.

NVDA shares fell more than 8% to approximately $159.50 after the closing bell, reversing a 2.9% gain during the regular session. Including the after-hours decline, Nvidia has reportedly lost around $600 billion in market value this week as investors assess the growing leadership and corporate-governance crisis.

What Did the Nvidia Board Report Say?

The Wall Street Journal reported that Nvidia’s directors were preparing to determine Huang’s future after allegations concerning two personal relationships, including one involving a business executive whom US intelligence officials reportedly suspected of ties to Chinese intelligence.

Reuters subsequently reported that Nvidia’s board was meeting on Wednesday to decide whether Huang should remain CEO, citing a person familiar with the matter. Reuters said it could not independently verify the underlying media reports, while Nvidia did not immediately respond to its request for comment.

Separate reporting also alleged that Huang had a personal relationship with an Nvidia executive who reported to him. These remain media allegations, and Nvidia has not publicly confirmed that its board has voted to remove Huang.

As of early November 12, Nvidia had not published a new board statement or regulatory filing announcing a leadership change.

What Has Nvidia Officially Confirmed?

Nvidia confirmed on November 8 that its board had launched an independent investigation following reports that Huang may have been targeted by a foreign intelligence effort.

A committee of independent directors, supported by outside counsel, is overseeing the inquiry. The company said the review would examine all available information.

Crucially, the board’s official statement said it had no reason to believe that Nvidia secrets or US national security had been compromised. It also expressed confidence in Huang and his leadership team, adding that the CEO was cooperating with the investigation.

That statement remains Nvidia’s latest confirmed position. The reported effort to remove Huang therefore represents a potentially significant change from the board’s publicly stated support, but no final decision has been announced.

Nvidia Stock Falls More Than 8%

Nvidia shares dropped to approximately $159.50 in after-hours trading, compared with a regular-session close near $173.

The decline followed an otherwise positive day for technology stocks. CoreWeave surged nearly 25% after reporting 168% revenue growth and a $132.5 billion backlog, helping the Nasdaq Composite rise 1.6% and the S&P 500 gain 1.3%.

The Nvidia report reversed part of that optimism. Nasdaq 100 futures fell nearly 1%, S&P 500 futures dropped around 0.4% and a major semiconductor ETF declined almost 2%. CoreWeave and Nebius also moved lower in extended trading.

Nvidia represented approximately 6.3% of the S&P 500 at the end of October. Its size means that a sustained decline can affect broad index funds and the overall Nasdaq and S&P 500, rather than remaining an isolated company event.

Why Is Jensen Huang So Important to Nvidia?

Huang co-founded Nvidia in 1993 and has led the company for more than three decades. He transformed Nvidia from a gaming-graphics company into the world’s dominant supplier of processors used to train and operate artificial intelligence models.

His role extends beyond that of a conventional chief executive. Huang is closely associated with Nvidia’s product roadmap, developer ecosystem, customer relationships and negotiations with governments over AI-chip export policy.

He owns approximately 3.6% of Nvidia and reportedly has dozens of executives reporting directly to him. The company has not publicly identified an obvious successor, increasing the risk of disruption if the board removes him immediately.

Nvidia has experienced management transitions below the CEO level, but replacing a founder who remains central to product strategy and investor confidence would be a substantially larger challenge.

What Could Happen Next?

The board has several possible options beyond immediately removing Huang.

It could allow him to remain CEO while the independent investigation continues, reduce some of his responsibilities, appoint a stronger independent oversight structure or begin a formal succession process. Huang could also step down voluntarily if the controversy creates an ongoing distraction.

A removal decision would create immediate questions about:

• Who would serve as interim CEO;
• Whether Nvidia has a credible succession plan;
• How product development and customer negotiations would be managed;
• Whether the investigation identifies any breach of company policy;
• Whether government or regulatory scrutiny could expand.

The board’s eventual decision will likely depend on evidence from the independent review rather than the personal allegations alone. Investors will also want clarity on whether any confidential information, export-control issue or national-security concern was involved.

Nvidia Earnings on November 17 Become More Important

Nvidia will report fiscal third-quarter results on November 17, with its conference call scheduled for 5 p.m. Eastern Time.

The company previously forecast quarterly revenue of approximately $108 billion, plus or minus 2%, with a gross margin near 74%. Nvidia said that forecast assumed no data-center computing revenue from China.

Normally, investors would focus on Blackwell and Rubin chip demand, data-center revenue, margins and hyperscaler capital expenditure. The upcoming call may now be dominated by questions about leadership continuity and the board investigation.

Strong results could reassure investors that Nvidia’s underlying AI business remains intact. However, even a revenue beat may not eliminate the valuation discount if the company cannot clarify who will lead its strategy.

Until Nvidia issues an official update, reports that the board plans to remove Huang remain unconfirmed. The combination of leadership uncertainty and an approaching earnings report is likely to keep Nvidia stock and the broader AI sector unusually volatile.

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