The board of directors at Nvidia convened on a Wednesday evening to deliberate the future of Chief Executive Officer Jensen Huang, according to multiple news outlets. Initial reports from The Wall Street Journal indicated that directors were laying the groundwork to oust him, with a potential meeting scheduled as early as Wednesday night. Meanwhile, traders on the prediction market Kalshi estimated an 80% probability that Huang would be removed from his post by December 1, based on figures recorded at 8 PM Pacific Time on November 11.

Just hours prior to these developments, The New York Times reported that five Nvidia employees detailed a relationship between Huang and Kimberly Powell, the company's vice president of healthcare who reports directly to him. As of yet, neither Nvidia, Powell, nor Huang have issued an official confirmation regarding the matter.

In the wake of the news, Mixed News reported that the company's stock tumbled 8% in after-hours trading.

Having helmed Nvidia since its founding in 1993, Huang maintains a sprawling organizational structure with more than 60 managers reporting directly to him. The firm currently commands a dominant position, supplying roughly 90% of the specialized chips that form the backbone of the artificial intelligence boom, particularly as the adoption of Agentic AI accelerates. While many investors traditionally view him as untouchable, the corporation's ownership framework tells a different story.

Why The Nvidia Board Can Overrule A Founder

Certain corporate founders enjoy ironclad job security. Meta's Mark Zuckerberg, for instance, holds a specialized class of stock carrying ten votes per share, giving him absolute authority over board composition.

Conversely, Nvidia operates under a standard single-class stock structure granting one vote per share. According to CNBC, a significant portion of Huang's equity is held in joint trusts with his wife, Lori, while the nearly 70 million shares registered directly in his name afford him constrained control.

The board consists of 11 seats, of which Huang occupies just one. The remaining 10 positions are held by independent directors who possess the voting majority required to replace the CEO. Moving swiftly on Tuesday, the board retained the prestigious law firm Wachtell, Lipton, Rosen and Katz to spearhead an independent investigation.

Public sentiment and stakeholder pressure can occasionally alter a board's trajectory. In 2023, OpenAI directors famously ousted Sam Altman, only to reverse their decision within five days after facing a fierce employee revolt and strong backing from Microsoft.

However, navigating a similar corporate rescue becomes considerably more challenging when an investigation involves an alleged conduct violation with a direct subordinate. Furthermore, Nvidia's internal corporate guidelines explicitly discourage romantic entanglements between managers and their reporting staff.

What The Nvidia Board Lacks Is A Successor

Historical precedents from other major global corporations highlight the delicate balancing act facing Nvidia's leadership.

Boeing ousted Harry Stonecipher in 2005 over an executive affair, operating under its chief financial officer as an interim leader for nearly four months before recruiting Jim McNerney, then-CEO of 3M and a Boeing board member. More recently, Nestlé dismissed Laurent Freixe in 2025 following an undisclosed relationship with a direct subordinate, naming Philipp Navratil as his successor on the very same day.

Unlike those firms, Nvidia lacks a designated second-in-command, a vulnerability compounded by Huang's openly stated skepticism toward traditional succession planning. Financial analyst Dan Ives estimated that Nvidia's enterprise value could drop by 25% to 30% in the absence of Huang. Already, more than $450 billion in market capitalization has vanished since the investigation was publicly disclosed.

The Counter View On The Nvidia Board

Termination is not the only path available to the directors. The board could theoretically opt for a formal leave of absence, appoint an interim CEO, or transition Huang into an executive chairman role. Moreover, the allegations concerning Powell stem from unnamed sources and remain unproven accusations. The board has also publicly affirmed that there is currently no indication that national security or proprietary company secrets were compromised.

Federal regulators are closely monitoring the situation as well, with CBS News reporting that the Trump administration has been kept informed of the board's strategic options.

Five Questions The Nvidia Board Raises

As the corporate drama unfolds, industry observers are closely tracking five critical questions:

  • Will the CEO face termination, or will he be transitioned into an alternative leadership role?
  • Who will manage day-to-day operations tomorrow if the CEO departs—an internal candidate or an external leader?
  • Given that dozens of executives report directly to the CEO, which individuals are positioned to step up?
  • Did any board members have prior knowledge of how security personnel handled the reported situation surrounding Huang and the employee?
  • Do internal workplace conduct policies apply to the company's visionary founder in the exact same manner they apply to a newly hired staff member?

The modern AI revolution was forged on the bold bets placed by Jensen Huang, and the next chapter of the industry's evolution will be decided entirely by the vote of the Nvidia board.