The report followed a New York Times investigation revealing that Huang had a second extramarital relationship with Kimberly Powell, Nvidia’s vice president of health care. The Times cited internal sources and alleged video evidence showing the pair being affectionate at a hotel during a company conference in March. Huang, 63, admitted to being “unfaithful” to his wife in an internal letter to employees on Sunday, stating, “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.” He did not name Powell or Alice Huang, the other woman involved, in the statement.
The turmoil began on November 8, when Huang acknowledged a relationship with Alice Huang, a senior executive at Singapore-based Megaspeed International. U.S. officials reportedly circulated a memo alleging Alice Huang is an asset of China’s Ministry of State Security. Neither Alice Huang nor Megaspeed International responded to requests for comment. The Chinese government denied the allegations, calling them “baseless and purely slanderous smears against China.” An Nvidia spokesperson previously stated that Huang’s interactions with Alice Huang were “not unusual or unexpected” and part of his job.
Financial markets reacted sharply to the reports. Nvidia shares had closed the regular session up 3% at $173.73 but slid to approximately $160 in after-hours trading, a drop of nearly 8%. Nasdaq futures also fell as the selloff weighed on the Nasdaq-100 index. Since the initial revelations, Nvidia has lost more than $450 billion in market value, according to CBS News. At Wednesday’s close, the company’s market capitalization stood at approximately $4.1 trillion, making it the second most valuable company in the world, behind only Apple.
Analysts warn that the volatility poses risks to ordinary investors. Leonard Gilroy, senior managing director of the Reason Foundation’s Pension Integrity Project, noted that Nvidia represents about 6% of the S&P 500 and 10% of the Nasdaq-100. He estimated that the average American’s exposure to Nvidia stock volatility in a typical 401(k) is between 3% and 5%. While Nvidia became the first company to reach a $5.5 trillion market cap in May 2026, the current leadership crisis threatens that valuation.
Nvidia launched an independent board investigation on Sunday “in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort.” The company has not yet confirmed the outcome of the board meeting. With the board potentially meeting imminently, investors and stakeholders await a definitive decision on Huang’s tenure.
