NVIDIA Plunges 8% Premarket as Jensen Huang Faces Ouster Threat

【Financial News, New York—Correspondent Lee Byeong-cheol】  The growing possibility that NVIDIA CEO Jensen Huang could step down is roiling the global AI semiconductor market. NVIDIA shares plunged more than 8% in U.S. premarket trading, and hundreds of billions of dollars in market value have evaporated in recent days. With no clear successor to Huang, concerns about a leadership vacuum appear to be spreading across the AI industry.
On the 12th, local time, NVIDIA shares fell about 8% in U.S. premarket trading. Reports that NVIDIA’s board was preparing to oust Huang weighed on investor sentiment.
NVIDIA’s board is preparing a plan to dismiss Huang. After admitting to an extramarital relationship with a woman suspected of having ties to Chinese intelligence, Huang is also facing allegations that he had an inappropriate relationship with an executive inside the company.
The New York Times (NYT) earlier reported that Huang also had an extramarital relationship with Kimberly Powell, vice president of NVIDIA’s healthcare division. Powell reports directly to Huang. CNBC reported that NVIDIA’s board met on the 11th to discuss whether to dismiss Huang.
The market’s biggest concern is that there is no successor to replace Huang. He has led the company for 33 years since co-founding NVIDIA in 1993. Huang helped transform NVIDIA from a manufacturer of gaming graphics processing units (GPUs) into a key player in the global AI semiconductor market.
Huang has previously said that he does not believe succession plans are necessary. As a result, NVIDIA is reportedly without a clear successor to take over from him.
Wall Street has even warned that NVIDIA shares could fall another 20% if Huang is actually dismissed. Investment bank Bernstein cut its price target for NVIDIA in half that day, from $400 to $200.
NVIDIA’s leadership crisis is also spreading to global stock markets. Nasdaq 100 futures fell that day, while semiconductor and AI-related stocks weakened in major Asian markets. The uncertainty surrounding the broader AI investment ecosystem built around NVIDIA has grown.
By contrast, rival AMD and Broadcom rose 3.9% and 3%, respectively, in premarket trading. The gains appear to reflect expectations that the possibility of Huang’s departure could benefit NVIDIA’s competitors.




[email protected] Correspondent Lee Byeong-cheol Reporter