Nvidia stock drops 8% as board weighs CEO Jensen Huang's fate

Nvidia shares fell more than 8 percent in after-hours trading on Wednesday as the company’s board evaluated the future of Chief Executive Officer Jensen Huang. The move, if it holds through the official Nasdaq open on Thursday, would wipe out hundreds of billions of dollars in market capitalization. Because trading volumes are low outside regular market hours, such moves can appear exaggerated compared to standard session activity.

The stock is now down roughly one-third from its high set at the start of October. That decline represents a loss of more than $1.5 trillion in value. A drop of this magnitude places the company in a bear market, a status defined by a fall of at least 20 percent from a recent peak. The share price has lost approximately 15 percent of its value year to date, including the latest session.

Huang co-founded Nvidia in 1993 and has since become a central figure in the artificial intelligence industry. His leadership helped drive the sector’s growth, which in turn pushed the broader stock market to repeated new highs in recent years. The company became the world’s largest public firm by market value in 2024. It now holds a dominant position in major indices such as the S&P 500 and belongs to the group of tech giants known as the Magnificent Seven.

The board’s review follows reports that Huang had an affair with an Nvidia executive who reports to him. Reports also state that he had a relationship with a woman whom U.S. intelligence agencies identified as a Chinese spy. These personal revelations have cast doubt on the stability of the company’s top leadership during a period of intense market focus on AI infrastructure.

Analysts project Nvidia will generate a profit exceeding $200 billion this year. Demand for its chips remains high as technology firms rush to construct large AI data centers. However, the uncertainty surrounding its CEO has introduced a new variable for investors tracking the AI trade.

During last week’s market volatility, Nvidia’s market value slipped below that of Apple. It had previously held the top spot globally. The company’s recent trajectory has altered its standing among the largest public corporations, even as its fundamental business performance remains strong.

Wall Street now faces questions about how internal issues at one of the most influential companies in the global economy might affect broader market trends. The situation adds another layer of complexity to an already sensitive environment for tech stocks.