Nvidia CEO Jensen Huang faces potential dismissal following a new affair

The position of Nvidia CEO Jensen Huang is under severe pressure. According to The Wall Street Journal, the board of directors is preparing for his possible dismissal following revelations about multiple extramarital affairs. The news is causing unrest on Wall Street. Nvidia's share price fell by 8.6 percent in after-hours trading.

Nvidia's board of directors was scheduled to meet on Wednesday to decide on Huang's future. This is reported by The Wall Street Journal, citing insiders.

A dismissal has not yet been confirmed. Nvidia has not yet publicly responded to the report.

The matter began on Sunday, when Huang admitted to having had an extramarital affair with Alice Huang. She was a director at Megaspeed International, a Singapore-based data center company that is a major customer of Nvidia in Southeast Asia.

According to U.S. reports, Alice Huang is suspected of having ties to Chinese intelligence agencies. Megaspeed is also under investigation for possible illegal deliveries of advanced chips to China.

Nvidia and Megaspeed have denied any involvement in prohibited chip deliveries. The Chinese government has also denied the allegations of espionage.

The affair has raised questions about potential security risks for Nvidia. The company is investigating whether sensitive information was compromised during the relationship. So far, it has not been established that Huang shared any trade secrets.

A second affair came to light on Wednesday. According to The New York Times, Huang also had a relationship with Kimberly Powell, Nvidia's Vice President of Healthcare.

The newspaper relies on statements from former employees. Huang and Powell were reportedly filmed behaving intimately at an Nvidia conference in a San Jose hotel in March.

Powell has not responded publicly to the reports.

The revelations put Nvidia in a difficult position. Huang is not just a director, but the co-founder who has been leading the company since 1993. Under his leadership, Nvidia grew into one of the most important companies in the world.

The chip manufacturer plays a central role in the development of artificial intelligence. Major tech companies rely on Nvidia chips for their data centers and advanced systems.

Huang is also personally involved in key partnerships and investments. As a result, a sudden departure could have consequences that extend beyond the day-to-day management of the company.

Nvidia does not have a clear public succession plan. This makes the question of who should potentially replace Huang all the more important.

Investors are reacting negatively to Huang's possible departure. Nvidia's stock closed regular trading on Wednesday at $173.73, but lost 8.6 percent in after-hours trading following the news.

The decline follows a trading day on which technology stocks actually rebounded strongly. Earlier on Wednesday, Nvidia benefited from renewed confidence in the growth of artificial intelligence.

Following the reports, this optimism gave way to uncertainty about the chipmaker's leadership.

The board of directors is now faced with the question of what consequences the revelations should have for Huang and whether his position within the company is tenable. It is not yet known when Nvidia will provide clarity on this matter.