--- title: "Nvidia Board Decides the Fate of Jensen Huang: Scandal, FBI Probe, and $600 Billion Market Cap Loss" description: "Nvidia's board of directors is considering the removal of CEO Jensen Huang amid a scandal regarding his personal affairs. Since the incident began, the company’s market capitalization has decreased by approximately $600 billion." date: 2026-11-12T13:09:14.851Z lang: en url: https://xab.info/en/posts/nvidia-board-decides-jensen-huang-fate tags: [nvidia, jensen-huang, ai-chips, corporate-governance, china-us, stocks] author: "Alexander Buran" publisher: "XAB.info" --- # Nvidia Board Decides the Fate of Jensen Huang: Scandal, FBI Probe, and $600 Billion Market Cap Loss ![Nvidia logo displayed against a blurred red downward stock market chart](https://xab.info/media/2026/11/12/nvidia-sovet-direktorov-reshaet-sudbu-dzhensena-huanga/nvidia-sovet-direktorov-reshaet-sudbu-dzhensena-huanga-1.webp) ## Key Points - Nvidia's board is considering the removal of CEO Jensen Huang following reports of two extramarital affairs. - The company has announced an independent investigation, hired a top law firm, and is under parallel FBI scrutiny. - Nvidia’s market cap has dropped by about $600 billion since the start of the scandal, with shares falling nearly 7.5%. - Baird, Bernstein Research, and Citi have lowered their stock forecasts and price targets due to corporate governance risks. - The scandal coincides with U.S. lawmaker calls for stricter chip export curbs to China and subsequent backlash from Beijing. The Nvidia board of directors has held a meeting to deliberate on the potential removal of CEO and co-founder Jensen Huang from his position. The proceedings were triggered by reports of two extramarital affairs involving the executive: one with a woman allegedly suspected by U.S. intelligence of working for China, and another with a subordinate, Nvidia’s Vice President of Healthcare, Kimberly Powell. Under the company’s bylaws, Huang can be removed "with or without cause" by a majority vote of the directors. The board consists of 11 members, all of whom, with the exception of Huang himself, are considered independent. ### Chronology: From a Vote of Confidence to Reconsidering the Decision According to The Wall Street Journal and Financial Times, it was the New York Times publication regarding Huang’s relationship with Kimberly Powell that prompted the board to reconsider the CEO’s future. Previously, on November 8, Nvidia announced an independent investigation into the circumstances, tasking it to a committee of independent directors, and stated it maintained confidence in Huang, seeing no reason to believe the events compromised national security or the company’s trade secrets. On the same day, in a letter to employees, Huang admitted to being in a relationship with the aforementioned woman. To provide legal counsel, the board engaged one of the top U.S. law firms, Wachtell, Lipton, Rosen & Katz, and reportedly, the Federal Bureau of Investigation (FBI) is conducting a parallel investigation. ### Market Reaction: Stock Plunge and Rating Downgrades The market reacted sharply to the scandal: Nvidia shares plummeted by nearly 7.5% in after-hours trading, and since the start of the incident, the company’s market capitalization, which peaked at approximately $4.5 trillion, has shrunk by roughly $600 billion. On the forecasting platform Polymarket, the probability that Huang will resign or be removed by the end of the year has risen to 88%. Leading investment firms have lowered their ratings: Bernstein analyst Stacy Rasgon halved her price target for the stock, Citi also cut its price target, and Baird and Bernstein Research adjusted their outlooks downward, citing corporate governance risks. ### Geopolitical Context: China and Export Restrictions The scandal coincides with mounting pressure from U.S. lawmakers pushing for stricter export controls on chips to China. Beijing responded by accusing the U.S. of using "false accusations of espionage" as a pretext for a technological blockade: Chinese Foreign Ministry spokesperson Mao Ning stated that China’s scientific and technological progress is based on independent innovation and open cooperation, urging Washington to stop "fabricating spy narratives." Analysts warn that potential restrictions on chip sales to China and data centers in Southeast Asia could negatively impact Nvidia’s short-term sales and a broader range of companies building data centers using its chips. ## Fact-Check & Sources - [Совет директоров Nvidia может отстранить гендиректора Дженсена Хуанга от должности — после еще одного обвинения во внебрачной связи](https://www.bbc.com/russian/articles/cwq6ere9pp76o) - Source: Board meeting, bylaws, 11 independent directors, link to Kimberly Powell (NYT), FBI investigation, 7.5% stock drop and $600B loss, Polymarket data (88%), analyst downgrades, Chinese MFA statement. - [Совет директоров Nvidia готовится уволить Дженсена Хуанга после двух внебрачных связей](https://www.ixbt.com/news/2026/11/12/sovet-direktorov-nvidia-gotovitsia-uvolit-dzensena-xuanga-posle-dvux-vnebracnyx-sviazei.html) - Clarifies timeline: Meeting potentially on Nov 12; Nov 8 independent investigation announced; Huang's letter to staff; Wachtell, Lipton, Rosen & Katz (June Kim) engaged; Nov 11 NYT publication. - [WSJ узнала о планах совета директоров Nvidia отстранить главу компании](https://www.rbc.ru/business/12/11/2026/6af4fa63502d708cfbede47c) - Confirms WSJ reports that board meeting could occur Nov 12; earlier claims of ties to a 'Chinese spy' and a subordinate. - [«Это было бы честью»: Илон Маск заявил о готовности нанять основателя Nvidia Дженсена Хуанга — но ...](https://rb.ru/news/eto-bylo-chestyu-ilon-mask-zayavil-o-gotovnosti-nanyat-osnovatelya-nvidia-dzhensena-huanga-no-bez-konkretiki/) - Подтверждено по источнику rb.ru ## FAQ ### Why is the Nvidia board considering Jensen Huang’s removal? The grounds are reports of two extramarital affairs by the CEO: one with a woman suspected of working for Chinese intelligence, and one with a subordinate, VP of Healthcare Kimberly Powell. According to the WSJ and FT, the NYT report on the second relationship prompted the board to reconsider his position. ### Can the board remove Huang? Yes. Under Nvidia’s bylaws, Huang can be removed "with or without cause" by a majority vote. The 11-member board is composed of independent directors, excluding Huang himself. ### What happened to Nvidia’s shares and market capitalization? Shares plunged nearly 7.5% in after-hours trading, and since the scandal began, the company's valuation, which peaked at roughly $4.5 trillion, has shed about $600 billion. ### What is the probability of Huang’s departure according to prediction markets? On Polymarket, the probability of Huang resigning or being removed by year-end is estimated at 88%. ### How have investment firms reacted? Baird and Bernstein Research lowered their forecasts; Bernstein analyst Stacy Rasgon halved the price target, and Citi also downgraded its target, citing corporate governance risks and potential leadership changes.