New developments have emerged in the extramarital affair scandal involving NVIDIA CEO Jensen Huang. After publicly admitting to infidelity against his wife on November 8 (local time) and apologizing to his family, NVIDIA employees, the board of directors, and shareholders, Jensen Huang has now been alleged to have had an improper relationship with a senior female executive within the company.
According to media reports, several former NVIDIA employees revealed that the woman involved is Kimberly Powell, Vice President of Healthcare at NVIDIA. She reportedly reported directly to Jensen Huang.
Sources familiar with the matter stated that Powell, 48, is married. This March, during NVIDIA's annual GTC developer conference in San Jose, California, Jensen Huang, 63, and Powell were spotted behaving intimately at a hotel near the venue. An onlooker even captured footage of the incident on their phone.
Citing sources familiar with the matter, the report stated that after the incident, Jensen Huang's security team detained the witness and required them to sign a non-disclosure agreement. In response to related reports,When contacted by phone, Jensen Huang merely responded, "You shouldn't be calling me directly," before hanging up.
The latest updates indicate that Powell has temporarily canceled a public event originally scheduled for Thursday local time, though the reason for the cancellation has not been confirmed.
It is understood that NVIDIA's current Code of Conduct explicitly requires employees to avoid conflicts of interest arising from their personal conduct, specifically highlighting personal relationships as areas of concern, and commits to promptly investigating any allegations of misconduct. To date, the allegations regarding the relationship between Jensen Huang and Powell have not been confirmed by NVIDIA or the individuals involved.
NVIDIA has partnered with external agencies to search for potential CEO candidates and is considering appointing an interim CEO first. Amina Rosenberg, portfolio manager at Australian hedge fund Minotaur Capital, believes NVIDIA CFO Colette Kress is a possible candidate for the interim CEO role.
Market anxiety stems not only from the scandal itself but also from NVIDIA's long-standing "key person risk." Stacy Rasgon, a senior analyst at Bernstein, made a widely cited statement to CNBC: "Jensen Huang is NVIDIA, and NVIDIA is Jensen Huang."
Research firm Melius Research pointed out that NVIDIA has "absolutely no clear successor," while the market had previously expected Jensen Huang to remain in his position for at least another decade.
Jensen Huang currently holds approximately 3% of NVIDIA's shares. The NVIDIA Board of Directors does not have a Chairman; instead, Lead Independent Director Stephen Neal and Jensen Huang jointly determine the board's agenda. This means that, legally, the board has the authority to remove Jensen Huang. According to NVIDIA's latest proxy statement, the company's bylaws allow the board to remove him with a majority vote, either "with or without cause."
Following the news, NVIDIA's stock plummeted by 9% in after-hours trading before narrowing its losses to approximately 8%, closing at $159.95 and falling below the $160 mark. Since the revelation of Jensen Huang's extramarital affair, NVIDIA's stock has dropped by about 15%, with its current market capitalization standing at approximately $4.2 trillion.