Nvidia might be firing its founder, but…

Nvidia’s board is preparing to oust CEO Jensen Huang, the WSJ reports, citing people familiar with the matter. Shares fell about 7% in after-hours trading.

What Happened?

In late October, news reports said U.S. officials believed Alice Huang, an executive at a company that buys Nvidia chips, was collecting information for China. The reports also said she had a close relationship with Nvidia CEO Jensen Huang. On November 8, Jensen Huang admitted he had been unfaithful to his wife. That same day, Nvidia’s board announced an independent investigation into reports that a foreign government had tried to gather information through him. The board said it had no reason to believe U.S. security or Nvidia’s secrets had been put at risk.

On November 11, news reports said Huang had another affair with an Nvidia executive. The Wall Street Journal then reported that Nvidia’s board was preparing to remove him as CEO, according to people familiar with the matter. Nvidia has not announced a decision, and China has denied the spying claims.

The board hasn’t announced a decision, and coverage so far doesn’t include a response from Nvidia to the WSJ report. Here’s what led up to it.

• 🔎Late October: reports say U.S. intelligence found Huang had a close relationship with a Chinese chip buyer and concluded she was passing information to Beijing
• 📝November 8: Nvidia’s board opens an investigation, says it has “no reason to believe” national security or company secrets were compromised, and keeps Huang as CEO during the review
• ✉️Huang’s letter: he tells employees he “was unfaithful to my wife” and takes “full responsibility.”
• ⚠️November 11: a second alleged affair comes out, this time with an executive who reports to him, and word spreads that the board is preparing to remove him

The first intelligence findings came from the New York Times, and Beijing has denied that Huang was a spy. Nvidia makes the GeForce graphics cards many gamers use, and nothing in the coverage says its GeForce plans are changing.

But…

Daebak (@MyDaebakCafe) argues that Huang could still have a say in Nvidia’s future as a shareholder if he loses his job as CEO. The author estimates his stake at about 3.5% of Nvidia and values it at more than $100 billion. Read the post on X.

• 🔒Huang would keep the Nvidia shares he already owns and could still vote with them. The post says he could also hold the shares, use them to back a loan, or sell them. Trading rules could limit when or how much he could sell.
• 📉Some of Huang’s pay comes in stock awards he can earn by meeting company goals. If he leaves before an award becomes his, he could lose it, depending on the terms of the award.
• 🗳️The post says Huang could ask other shareholders to vote for new board members at Nvidia’s annual meeting. That’s called a proxy fight, and he’d need support from other shareholders to win.
• 💡The author also suggests Huang could start a rival chip company and try to hire Nvidia engineers. Another possibility the author raises is a large stock sale that could push Nvidia’s share price down.

These are possibilities raised by the author. Nvidia’s public filings explain how Huang earns stock awards, and the exact terms would matter if he left. See Nvidia’s 2026 filing.