Nvidia's stock drops as the board reportedly prepares to remove CEO Jensen Huang

By Britney Nguyen

Nvidia's board of directors could reportedly meet as soon as today to determine the CEO's fate

CEO Jensen Huang is under pressure.

Shares of Nvidia were falling more than 7% in Wednesday's extended trading session following reports indicating that CEO Jensen Huang had an affair with an employee and that the company's board was prepared to oust him from his role.

Huang reportedly engaged in a relationship with Kimberly Powell, an executive at Nvidia (NVDA) who reported to him, the New York Times wrote, citing people who worked at the chip maker. Powell is listed as Nvidia's vice president of health care on the company's website.

The two executives were reportedly caught on video expressing affection for one another at a hotel in San Jose, Calif. on the sidelines of a company event earlier this year, according to the New York Times.

This adds to concerns that emerged over the weekend, when Huang admitted to having an extramarital affair. Reports indicated it was with someone the U.S. government believes could have been a Chinese foreign-intelligence asset.

Separately, the Wall Street Journal reported Wednesday that Nvidia's board was prepared to remove Huang from his post. The board was set to meet as soon as today, according to the story.

Nvidia didn't immediately respond to a MarketWatch request for comment.

Shares of Nvidia rivals Advanced Micro Devices (AMD) and Broadcom (AVGO) popped 4% and 3%, respectively, in after-hours action following the Journal's report.

William Gavin and Hannah Pedone contributed reporting.

-Britney Nguyen

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11-11-26 1747ET