Board of Nvidia reportedly meets to decide future of CEO Jensen Huang
Nvidia's board is reportedly deliberating on the future of chief executive Jensen Huang as the chipmaker's shares fall sharply in after-hours trading, though the company has not confirmed the discussions.
The board of Nvidia is reportedly meeting to decide the future of chief executive Jensen Huang, according to reports, as the chip giant's share price slid sharply in after-hours trading. The shares were said to have fallen by about 8 per cent. Nvidia has not confirmed that the board is deliberating on Huang's position, and the outcome of any such meeting remains unknown.
Nvidia is valued at close to $4 trillion, making it one of the most valuable companies in the world. Huang co-founded the business in 1993 and has led it for more than three decades. He holds a stake of roughly 3.6 per cent and does not hold super-voting shares, which means his influence over the company rests on his position and his standing with the board rather than on any special control of voting rights.
Governance critics have pointed to weak succession planning at the company as a reason for concern about the board's preparedness should Huang step away. Reports suggest the board has not set out a clear path for who would take over the top job, a question that has taken on added weight given the scale of the company and its importance to the wider technology sector.
The pressure on Nvidia has also come from a set of separate allegations that have circulated in recent reports. One report alleges that Huang had an affair with a subordinate. Those allegations are reportedly linked to a Chinese spy scandal involving Nvidia. Reports further claim that the company has lost more than $300 billion in market value since the scandal began. A separate reported allegation of cheating involves Kimberly Powell, an Nvidia executive. None of these claims has been confirmed by the company in the reporting available.
The political dimension of Huang's profile is also part of the picture. US President Donald Trump has praised Huang's work on what he has described as "superintelligence", a sign of the close attention the company's leadership has attracted at the highest levels of government. Whether that attention will have any bearing on the board's deliberations has not been reported.
For now, Huang's status and the board's decision remain unconfirmed. Investors and observers will be watching for an official statement from Nvidia, which has not yet addressed the reported board discussions or the allegations circulating about its chief executive.
Source: theguardian.com
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