Up and down, Why Nvidia stock crashed after bouncing back - What led to its fall? More trouble for CEO Jensen Huang!

Nvidia stock plunged more than 8% to $158.78 in after-hours trading following a Wall Street Journal report that the company was preparing to oust CEO Jensen Huang.

Nvidia shares rebounded 2.92% to close at $173.73 during Wednesday's regular trading session, recovering some of their losses after suffering sharp declines in the previous two sessions.

Meanwhile, US stock futures declined, with Nasdaq futures sliding 1%. In after-hours trading, Micron shares fell nearly 2%, while CoreWeave tumbled 6%. In contrast, rival chipmakers AMD and Broadcom gained 4% and 3%, respectively.

According to a Wall Street Journal report, Nvidia's board is considering removing CEO Jensen Huang from his position, with directors reportedly preparing to discuss his future at the company as early as Wednesday.

The development emerged shortly after The New York Times published a report alleging that Huang had an extramarital relationship with another Nvidia executive. According to the Journal, the company's board was preparing to convene to deliberate on the CEO's future.

The alleged relationship was reportedly with Kimberly Powell, Nvidia's vice president of healthcare. According to her official company biography, Powell oversees Nvidia's global healthcare business, including hardware and software platforms for accelerated computing, artificial intelligence and visualisation across medical imaging, life sciences, drug discovery and healthcare analytics.

The New York Times report further claimed that Huang and Powell were seen displaying affection towards each other at a hotel in San Jose, California, in March.

The latest allegations follow another report concerning Huang's personal life. Days earlier, the CEO was reportedly linked to Alice Huang, a woman whom US intelligence officials allegedly suspect of having connections to China's Ministry of State Security. The Financial Times reported on the alleged relationship, while The New York Times separately covered the intelligence concerns surrounding the woman.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.

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