The company’s shares dropped 8.6 per cent in after-hours trading after The New York Times first reported the relationship with Powell and The Wall Street Journal reported that Nvidia’s board could oust Huang.
Futures tracking the tech-heavy Nasdaq 100 also dropped about 1 per cent in evening trading.
Huang’s departure from Nvidia, until recently the world’s most valuable company, would have far-reaching consequences for the AI industry and US stock market.
Nvidia’s dealmaking—including extensive equity investments in AI companies and more complex financial guarantees—has made it a central player in the financing boom surrounding the technology. Its semiconductors, meanwhile, are integral to training and running AI models from the likes of OpenAI and Anthropic.
The news of a second relationship has piled pressure on Huang, already under intense scrutiny for his relationship with Alice Huang, an executive at a Singapore-based Nvidia customer called Megaspeed.
US intelligence officials believe Alice Huang had been recruited by China’s Ministry of State Security spy agency.
Donald Trump on Monday said the FBI was investigating the situation but supported Huang, calling him “a high-quality person.” The president and the Nvidia chief have formed a close rapport since Trump returned to the White House, making Huang an influential voice in US AI policy.
Senior Republicans and Democrats have called for congressional investigations into the Nvidia boss, who has pushed for US companies to be allowed to sell more advanced AI chips to China. Asked on X if he would hire Jensen Huang,
Elon Musk, Tesla chief executive, replied: “That would be an honor.”Nvidia’s board is set to hold urgent talks about the future of its founder Jensen Huang after revelations that he had an affair with a top executive at the company, according to people familiar with the matter.
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