Nvidia CEO faces board review over alleged affair with suspected spy

Nvidia's board is evaluating whether CEO Jensen Huang will remain in his role following reports of a second alleged extramarital affair, with shares dropping nearly 7.5% in after-hours trading. The company has hired a major law firm to investigate his relationship with a woman suspected of being a Chinese spy. The New York Times alleges Huang also had an affair with an Nvidia employee, and The Economist has called for his resignation or dismissal, stating his position is "unsustainable." Investment firms Baird and Bernstein Research have downgraded their recommendations, while Morgan Stanley removed the stock from its favored list, contributing to a loss of nearly half a trillion dollars in market value. Nvidia, valued at about $4.5 trillion, is a key supplier of advanced chips essential for AI development, with Washington restricting exports to China since 2022 on national security grounds. Analysts note a potential departure raises questions about succession and leadership, though China's foreign ministry dismissed espionage accusations as fabricated pretexts for technology restrictions.