Nvidia board prepares to oust CEO Jensen Huang after probe

Nvidia shares fell more than 8% to $159.51 in after-hours trading on Wednesday, according to CBS News. The decline followed a report by The Wall Street Journal stating that the board of directors is preparing to remove Chief Executive Officer Jensen Huang.

The chipmaker launched an investigation into Huang after he admitted to an extramarital affair, according to CBS News. In a message to employees on Sunday, Huang apologized to his family and wrote that there was no excuse for his actions.

U.S. intelligence agencies linked Huang to Alice Huang, a senior executive at Singapore-based Megaspeed International, according to CBS News. Intelligence agencies suspect she is an asset of China's Ministry of State Security.

Megaspeed International has been one of Nvidia's largest foreign customers, purchasing nearly $5 billion in artificial intelligence chips and hardware, according to CBS News. President Trump stated that the FBI is investigating romantic and business ties between Jensen Huang and Alice Huang.

CBS News reported that the Trump administration is aware of the board's plans. Nvidia's market value has fallen by more than $450 billion since the company announced the probe into Huang's conduct on Nov. 8.

Tech analyst Dan Ives of Yorkville Ives stated that investors are evaluating potential successors and government investigations. Vital Knowledge analyst Adam Crisafulli noted that Huang co-founded Nvidia in 1993 and plays a central role in the artificial intelligence sector.

What do these terms mean?

after-hours trading: Trading of stocks and securities conducted outside standard stock exchange operating hours.

market value: The total dollar value of a public company's total outstanding shares of stock.

artificial intelligence chips: Specialized hardware processors engineered to execute complex machine learning algorithms and computational workloads.