Nvidia shares drop 3% after CEO affair allegations

Nvidia shares fell nearly 3% in after-hours trading Wednesday following a report alleging CEO Jensen Huang had an extramarital relationship with healthcare vice president Kimberly Powell, who reports directly to him. The decline adds to weeks of pressure on the AI chip maker. The report, citing five company employees, claims the 63-year-old Huang and 48-year-old Powell were seen acting affectionately at a San Jose hotel during Nvidia's GTC conference in March. Nvidia's code of conduct prohibits conflicts of interest, including personal relationships, and the board has launched an independent investigation. The allegations follow Huang's earlier admission of a relationship with Alice Huang, a Singapore-based executive flagged by US intelligence as a suspected Chinese spy. Republican leaders have requested briefings on that matter, while investors now face added governance and succession concerns for the company central to global AI infrastructure.