Nvidia is reportedly preparing to remove long-serving Chief Executive Jensen Huang following reports that he had a second extramarital affair with an executive who reported directly to him.

The new allegations, initially detailed by and The New York Times, deepen a corporate governance crisis that began when Huang admitted to an earlier relationship with a woman alleged to be a Chinese intelligence asset. Reports say the board has convened to determine Huang’s future.

Internal company standards emphasise strict accountability regarding personal conduct and corporate risk. Nvidia’s own code of conduct tells employees to “avoid situations where our actions create conflict”, including personal relationships.

The mounting scandals have severely impacted investor confidence and shaken market stability. In extended trading after Wednesday’s close, Nvidia stock fell by more than 8%, taking its share price down to $160 (£120).

That marks the lowest level in more than a year and extends a brutal multi-day rout that has wiped approximately $600 billion (£451 billion) from the value of the company.

Huang has played an instrumental role in transforming the chipmaking giant into one of the world’s most valuable enterprises and market experts note that his potential removal would create an unprecedented challenge for the tech sector.

Granite Wealth Management director Bruce Zaro remarked that Huang “was the one who led the marvellous rise of Nvidia,” adding: “I guess the question would be, can someone step up if Jensen has to resign or is forced out?”

Because Nvidia does not currently have a formalised succession plan in place, any sudden departure would leave a critical leadership vacuum at the top of one of America’s most strategically vital enterprises. As the independent board investigation, supported by external legal counsel, continues alongside separate federal inquiries, the future of the company’s leadership remains deeply uncertain.

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