Nvidia’s board has engaged an external firm to identify possible successors to Chief Executive Officer Jensen Huang as the chipmaker grapples with mounting controversy surrounding its longtime chief, Bloomberg reported on Wednesday, citing a person familiar with the matter.

The board is also considering appointing an interim chief executive while it searches for a permanent replacement, according to the Bloomberg report.

Directors were scheduled to meet on Wednesday to deliberate on Huang’s future, with reports suggesting that his position at the world’s leading AI chipmaker could be at risk.

The Wall Street Journal had earlier reported that Nvidia’s board was preparing to remove Huang. Reuters also reported that directors were meeting late Wednesday to consider whether to oust the 63-year-old executive.

The developments represent a significant change from Sunday’s position, when the board had expressed confidence in Huang and his leadership team.

Under the company’s bylaws, the chief executive can be removed “with or without cause" through a majority vote of directors. Nvidia has 11 board members, with all except Huang classified as independent.

The boardroom uncertainty follows reports about two alleged extramarital relationships involving Huang, including one with a businesswoman identified as Alice Huang, who has reportedly come under US intelligence scrutiny over suspected links to Chinese espionage.

According to reports, investigators were examining whether Alice Huang facilitated the movement of Nvidia chips to Chinese companies.

These revelations have triggered questions about corporate governance at the semiconductor giant, prompting the board to initiate an internal investigation and retain external legal advisers.

The controversy has also drawn attention from US lawmakers seeking tighter restrictions on advanced chip exports to China.

Fresh Allegations Add To Pressure On Nvidia Chief

Adding to the controversy, The New York Times reported on Wednesday that Huang had also allegedly been involved in an extramarital relationship with Kimberly Powell, Nvidia’s vice president of healthcare, who reportedly worked under him. The newspaper cited five people who had worked at the company.

When contacted by the publication and asked about his relationship with Powell, Huang reportedly responded, “I don’t think you should be talking to me directly." He subsequently ended the call, according to the report.

In a message to employees on Sunday, Huang acknowledged being unfaithful to his wife and accepted “full responsibility", without providing further details about the relationship.

Nvidia Shares Slide Over 8%

The Wall Street Journal’s report about a possible leadership change sent Nvidia shares tumbling more than 8% in extended trading. If the decline holds, the company would have shed approximately $600 billion in market capitalisation since the board’s investigation became public.

US President Donald Trump has voiced support for Huang, describing him as an ally, while saying he had not discussed the allegations with the Nvidia chief.

Separately, Axios reported on Wednesday that US Commerce Secretary Howard Lutnick had held up Trump’s proposed crackdown on companies suspected of diverting Nvidia’s advanced chips to Chinese buyers.

Huang could also face a congressional subpoena if he does not respond to a request to provide a closed-door briefing concerning allegations involving a businesswoman suspected of spying for China.

Who Could Replace Jensen Huang At Nvidia?

Huang’s possible exit presents a major succession challenge for Nvidia, which he co-founded more than three decades ago and transformed into a roughly $4 trillion technology powerhouse at the centre of the artificial intelligence boom.

The 63-year-old executive owns approximately 3.6% of the company’s shares and has maintained close oversight of its operations, with dozens of executives reporting directly to him. The company does not have an immediately apparent successor.

Chief Financial Officer Colette Kress, who has held the position for more than a decade, could be considered for an interim leadership role, Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, said while speaking to Reuters.

However, the longer-term question concerns who would take charge of Nvidia’s technology strategy and product roadmap.

Ian Buck, who oversees Nvidia’s data centre business, has also emerged as a potential successor in prediction market discussions.

Source: News18