Critical day for Jensen Huang in Nvidia management

It has been claimed that Nvidia's board of directors is preparing to dismiss CEO Jensen Huang. The claim came to the fore with the news of the Wall Street Journal. The trigger was a second allegation of extramarital affairs published by the New York Times. Moreover, this claim comes on the heels of another affair that Huang admitted to a few days ago.

Board meeting and decline in shares

The board was expected to meet as soon as Wednesday, US time, to decide Huang's future at the company, according to the Journal. Nvidia did not immediately respond to requests for comment. Therefore, it is unclear whether the claim has been verified by the company.

The market did not wait. Nvidia's shares fell more than 7 percent in after-market trading on Wednesday.

Second claim: Kimberly Powell

According to the New York Times, the second relationship took place with a manager who reported to Huang. The person in question is Kimberly Powell, Nvidia's vice president of healthcare. It is stated that both of them are married to other people.

Two anonymous sources said Huang and Powell were spotted together at a hotel in San Jose during Nvidia's GTC developer conference in March. The Times did not see this video. The newspaper wrote this clearly in its report.

An unnamed source speaking to CNBC also said that rumors about the relationship between the two names have been circulating in the company for a long time. One reason, according to the source, is that Powell has no health or science background. Therefore, it seems that the allegation is not a new issue within the company.

First relationship and investigation

Nvidia and Huang had confirmed a relationship with Megaspeed executive and alleged spy Alice Huang. The company announced that it had appointed former US prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz for the investigation carried out over the weekend. The new rumor suggests that the board may not wait for the outcome of this process.

Last year, Huang began working with crisis communications firm Heller, known for its handling of sexual scandals, Wired reported. The firm's founder had advised figures facing public pressure, such as former congressman Anthony Weiner and author Jeffrey Toobin. Heller also did not immediately return a request for comment.