Nvidia, the world’s most valuable chipmaker, faces the gravest governance crisis in its history as the scandal around CEO Jensen Huang deepens.
It began on 8 November, when Huang admitted in an email to staff that he had been unfaithful to his wife. Reports had linked him to Alice Huang, a former Megaspeed executive whom US intelligence suspects of working for China.
The Information then reported that her ties to Huang helped Chinese companies obtain about $7.5 billion in Nvidia chips, some of them covered by US export controls. President Trump said the FBI was “looking into” the matter.
On 11 November, The New York Times reported a second relationship, with a senior Nvidia executive who reports directly to Huang. That raised fresh questions about workplace conduct and what was disclosed to the board.
The Wall Street Journal reported that the board is preparing to remove Huang, and Bloomberg said Nvidia is working with an outside firm to explore possible replacements. The company has not confirmed either report.
Markets reacted sharply. Nvidia fell about 4% on Monday and more than 6% on Tuesday. After closing at $173.73 on Wednesday, the stock dropped nearly 8% in after-hours trading.
Critics say the scandal exposes a governance vacuum. Nvidia has no board chair, and three directors have served since its founding in 1993. Analysts question whether such a long-serving board can hold Huang accountable.
Nvidia has also never named a successor, leaving investors uncertain about who would lead if Huang stepped aside.
Some experts expect a middle path. “It will be more like a ‘stay, with less,’” said analyst Jason Schloetzer. He pointed to a stronger second-in-command, clearer succession planning and a refreshed board.
Warning signs appeared months ago. In May, short seller Culper Research flagged Huang’s close ties to Alice Huang. It also claimed that more than 20% of Nvidia’s computing revenue was still coming from China through intermediaries.
Whatever the board decides, the lesson is stark: even the most powerful technology company cannot outgrow the need for accountable leadership.
