Nvidia Corporation experienced an abrupt 8.61% collapse in after-hours trading late Wednesday, bringing its stock price down to $158.78. This sharp reversal wiped out the gains from the regular session, which had closed with a 2.92% increase at $173.73. The market turbulence was triggered by reports that the board of directors for the artificial intelligence hardware giant was actively preparing to remove billionaire co-founder and CEO Jensen Huang.

Reuters independently corroborated initial reporting from the Wall Street Journal, confirming that directors convened late Wednesday to deliberate on Huang's professional future. The mounting pressure stems from intensifying scrutiny surrounding alleged personal relationships involving Huang.

Earlier on Wednesday, The New York Times reported that Huang engaged in an extramarital affair with Kimberly Powell, Nvidia’s vice president of healthcare, who directly reports to him. This development follows disclosures from the previous Sunday, when the board announced an independent investigation into whether Huang had been targeted by a foreign intelligence operation, though officials expressed public confidence in his leadership at the time and noted zero evidence that corporate secrets or national security had been compromised.

A primary hurdle for Nvidia is the absence of an obvious successor to Huang, who has helmed the company since its establishment in 1993. Bloomberg reported that the board has engaged an external search firm to identify potential replacements while also weighing the appointment of an interim CEO if Huang is ultimately ousted.

Elon Musk Weighs In on Potential Ouster

Tesla and SpaceX chief executive Elon Musk signaled on Wednesday that he would welcome the opportunity to bring Huang on board should Nvidia remove him from his post. In response to a post on X urging him to hire the embattled tech leader, Musk stated, That would be an honor. Musk's enterprises represent massive clients for Nvidia AI processors, and both executives have frequently traded public accolades in recent years.

The controversy deepened after an employee memo on Sunday where Huang conceded to an extramarital relationship following reports linking him to Alice Huang, a senior executive at computing infrastructure firm Megaspeed International. U.S. intelligence agencies have raised suspicions that Alice Huang operated on behalf of Beijing. In response to these admissions, Nvidia's board enlisted outside legal counsel to spearhead an independent probe into potential compromises of corporate intellectual property or national security, maintaining that no such breaches have been uncovered thus far.

Congressional Subpoena Threats and National Security Concerns

Federal lawmakers have issued explicit warnings that they will issue a subpoena if Huang fails to comply with a demand to testify regarding his connection to Alice Huang. Representative John Moolenaar, chairman of the House China Committee, stated Wednesday that the Nvidia chief was given a deadline of 5 p.m. ET to commit to a closed-door briefing.

Last week, Moolenaar alongside House Foreign Affairs Committee Chairman Brian Mast and House Intelligence Committee Chairman Rick Crawford formally requested Huang's presence at a joint closed-door session scheduled for November 18. The lawmakers aim to question him regarding his interactions with Alice Huang and Nvidia security protocols against foreign espionage. The joint letter underscored significant national security anxieties regarding potential access by the People's Republic of China to sensitive American technology.

The subpoena threat compounds mounting calls from various legislators demanding a comprehensive federal investigation and Huang's resignation. Senator Kevin Cramer of North Dakota urged Huang to step down due to severe extortion risks, while Senator Chris Coons of Delaware cautioned that American national security may well have been jeopardized by the affair.

Current estimates place Huang's net worth at approximately $151.2 billion, positioning him as the 11th wealthiest individual globally. That valuation faces further decline if the after-hours sell-off persists when official markets resume trading. Huang previously dropped out of the top ten wealthiest individuals earlier in the week following his public admission and the subsequent launch of the board investigation.