Dubai: Nvidia shares fell 8.6% in after-hours trading on November 11 after The New York Times (NYT) reported that CEO Jensen Huang had a second affair. The report names Kimberly Powell, the company’s vice president of healthcare, who reported directly to Huang.
The stock lost $14.95 to trade at $158.78. It had closed the regular session 2.92 per cent higher at $173.73. The sell-off adds to an already heavy month. Nvidia lost more than $1 trillion in market value in the month as the stock has lost 23.24 per cent. This was even before the board’s statement, and amidst a broader decline in AI stocks. Investors have since moved toward rivals or are completely moving away from AI/tech stocks.
The latest expose
NYT has divulged details after speaking with 5 people who work at Nvidia who have disclosed that Huang, 63, and Powell, 48, were filmed being affectionate at a San Jose hotel during the company’s developer conference in March. NYT doesn't claim to have seen the video and hence the allegations remain unverified.
Nvidia or its board haven't confirmed the claims and either has there been any statement from Powell.
Board under pressure
The NYT report came merely hours after The Wall Street Journal said the board is preparing to remove Huang.
