Nvidia shares plunged more than 8% in after-hours trading on Wednesday, November 11, 2026, after reports emerged that the company’s board of directors was preparing to remove longtime Chief Executive Officer Jensen Huang.
The selloff sent Nvidia shares to approximately $158.76, reversing a 2.92% gain during regular trading, when the stock closed at $173.73.
The sharp decline threatened to wipe out hundreds of billions of dollars in the company’s market value, intensifying concerns about the future of the world’s leading artificial intelligence chipmaker.
The Wall Street Journal first reported that Nvidia’s board was preparing to oust Huang, who co-founded the company in 1993 and has led it for more than three decades.
Reuters subsequently reported that directors were meeting on Wednesday evening to decide whether Huang should remain in charge, marking a significant shift in the company’s position after the board publicly expressed confidence in him just days earlier.
The development has rattled investors who have closely associated Nvidia’s extraordinary growth with Huang’s leadership, technical expertise and ambitious artificial intelligence strategy.
The reported leadership crisis follows mounting controversy surrounding Huang’s personal conduct and allegations involving potential national security risks.
The first controversy emerged after reports linked Huang to Alice Huang, a Singapore-based businesswoman whose activities have attracted scrutiny from US intelligence agencies over suspected connections to China’s Ministry of State Security.
Investigators reportedly suspect that the businesswoman could have facilitated the diversion of Nvidia’s advanced artificial intelligence chips to Chinese companies through intermediary businesses.
The allegations raised questions about potential exposure of Nvidia’s technology and the company’s compliance with US export restrictions.
Nvidia subsequently launched an internal investigation and engaged outside legal counsel to examine the matter.
The controversy escalated on Wednesday after The New York Times reported that Huang had allegedly been involved in another extramarital relationship with Kimberly Powell, Nvidia’s vice president of healthcare, who reportedly worked directly under him.
The newspaper cited five people familiar with the alleged relationship.
The additional allegations intensified pressure on Huang as directors considered whether his conduct had created reputational and corporate governance risks for the company.
The reported board meeting represents a major development because directors had previously expressed confidence in Huang and his leadership team.
Under Nvidia’s corporate bylaws, the board can remove its chief executive with or without cause through a majority vote.
The company has 11 directors, with Huang serving as the only non-independent member.
According to reports, the board has also been working with an external executive search firm to identify potential replacements should it decide to remove him.
However, the possibility of losing Huang presents a difficult challenge for Nvidia because he has played a central role in shaping its technology strategy and business relationships.
Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, which owns Nvidia shares, said investors were increasingly considering a future without the company’s founder.
“The market is starting to price Nvidia without its founder as the likely outcome, not a tail risk,” Rosenberg told Reuters.
She added: “Losing Jensen would be a real blow.”
Rosenberg identified CFO Colette Kress as a possible interim replacement, while Nvidia technology executive Ian Buck has emerged as a potential longer-term candidate.
Arm CEO Rene Haas has also featured in discussions about possible external replacements.
The reported ouster has intensified selling pressure on Nvidia shares, with investors assessing the consequences of losing an executive who has become synonymous with the company’s success.
Nvidia’s stock had already shed approximately $600 billion in market value since the board announced its investigation into the controversy involving Alice Huang.
The latest after-hours decline added to those losses and threatened to push the company’s valuation below the $4 trillion mark.
The uncertainty also spread to other companies operating in the artificial intelligence sector.
Micron Technology and CoreWeave recorded declines in extended trading, while rival chipmakers Advanced Micro Devices and Broadcom gained approximately 4% and 3%, respectively.
The timing of the controversy presents another challenge for Nvidia as the company prepares to release its quarterly financial results on November 17, 2026.
The company is also facing congressional scrutiny, with US lawmakers seeking information from Huang about the national security allegations and Nvidia’s safeguards against the diversion of its chips to restricted markets.
