Nvidia’s Leadership Crisis Deepens as Board Considers Ousting Huang Over Second Affair All

Nvidia’s board is weighing whether to remove CEO Jensen Huang following new reports of a second extramarital relationship with a senior executive, just as the company grapples with fallout from his admitted affair with a Chinese national accused of intelligence ties. Sources say the board is set to discuss Huang’s future, with his potential removal now a serious possibility. The company’s stock has dropped over 9% in late trading, continuing a streak of losses that now spans six weeks.

The latest controversy involves Kimberly Powell, vice president of Nvidia’s Healthcare division, who was reportedly seen in an affectionate encounter with Huang at a San Jose hotel in March. Powell, whose professional background doesn’t match her leadership role in a health-focused business unit—she has overseen the division since 2017—has been linked to Huang in rumors for years. If confirmed, this would be the second major personal scandal for Huang in recent days, following his admission to a relationship with Alice Huang, a Singapore-based executive U.S. officials allege has connections to China’s Ministry of State Security.

The situation has exposed critical vulnerabilities in Nvidia’s governance structure. The company dominates the AI chip market, accounting for roughly 90% of global demand and making it the world’s second-most valuable public firm. Huang’s leadership is central to this dominance, with his hands in nearly every aspect of operations and family members holding key executive positions. His 3.56% stake as the largest individual shareholder further ties his personal influence to the company’s fate. Without a clear successor—especially one capable of maintaining investor trust—his potential departure could destabilize Nvidia at a moment when its market position is already under pressure from regulatory and geopolitical risks.

The timing of these revelations is particularly damaging. They come as Nvidia faces intensified scrutiny over Huang’s relationship with Alice Huang, which has drawn congressional attention and an FBI investigation. The company has already retained Wachtell, Lipton, Rosen & Katz to probe whether corporate secrets were compromised, though no evidence of espionage has been publicly confirmed. Former President Donald Trump, who has defended Huang as an “honorable man,” reportedly knew about the first affair but did not intervene, adding a layer of political uncertainty to the crisis.

Powell’s role in Nvidia’s Healthcare unit—a smaller segment of the company’s broader data center business—has also raised questions. Her responsibilities include AI-driven medical imaging and drug discovery, areas where her lack of a health or science background stands out. Her keynote at Nvidia’s GTC conference in March highlighted the company’s push into healthcare AI, a growing but still niche market for its chips, which power everything from MRI machines to research applications.

For Nvidia’s investors and employees, the immediate concern is whether the company can function without Huang’s direction. The stock’s decline reflects broader unease about the company’s ability to navigate leadership instability, geopolitical tensions, and regulatory challenges. When we first reported on the first affair allegation on November 8, the focus was on potential espionage risks; today, the priority is operational continuity.

The board’s next steps will determine whether Nvidia can transition smoothly—or if the absence of a prepared successor will exacerbate its troubles. Huang’s ouster wouldn’t just be a personal setback; it would mark a turning point for an industry where his vision has shaped the trajectory of AI computing. The lack of a ready alternative underscores a fundamental risk: in companies built around a single leader’s authority, personal controversies can quickly become corporate crises.

Sources: yourstory.com · siliconangle.com