By Elena Vasquez

Nvidia’s board is preparing to remove Chief Executive Officer Jensen Huang, just days after prediction markets put his departure before the end of 2026 below 20%.

The Wall Street Journal reported Wednesday that directors, already preparing an investigation, have moved toward ousting Huang. The New York Times separately reported Wednesday that Kimberly Powell, Nvidia’s vice president of healthcare and Huang’s direct report, had an extramarital relationship with him, citing five company sources.

The Powell report was the second published account of an affair involving Huang during his marriage to Lori, his wife of more than 40 years. The first involved Alice Huang, an executive at Megaspeed, an Nvidia customer. The Times reported last month that US intelligence officials believed Alice Huang was passing information to Beijing.

What changed in Nvidia’s board calculus?

The board’s move followed a rapid reversal in expectations. Early this week, prediction-market traders assigned Huang less than a 20% chance of leaving before year-end 2026; by Wednesday, the debate centered on when he would leave rather than whether.

Brian Mulberry, chief market strategist at Zacks Investment Management, told Elena Vasquez on Wednesday morning that he put the probability of complete removal at 5%-10%. The estimates cover different outcomes: the market question concerns any departure before year-end, while Mulberry assessed the chance that Huang would leave entirely.

Mulberry said: “You have to handicap stuff that’s really hard to handicap, right? But he is such a big part of whatever happens next with Nvidia, just like Elon is with Tesla and SpaceX, that it could be incredibly disruptive.”

How much disruption could an ouster cause?

For Nvidia, the risks combine a stock-price shock with a succession vacuum. Tech bull Dan Ives previously estimated that Huang’s departure would shave 30% from Nvidia’s share price, a fall equal to nearly one-third of its value. The company has no clear successor waiting in the wings, so the board may need to look beyond its own ranks.

His public image has taken a hit, but three decades building Nvidia into the dominant company in the AI trade have created personal goodwill. Elon Musk said it would be “an honor” to hire Huang if the board removed him, underscoring the founder’s value beyond the company despite the conduct allegations.

What could China gain from leadership uncertainty?

The strategic consequences reach beyond one boardroom. Nvidia serves as a key US asset in the AI race, and instability at the company creates an opening for China to close the gap. A leadership stumble could hand Beijing an advantage in the contest to set the pace of AI development.

China benefits if Nvidia loses momentum while competitors continue to advance. That makes Huang’s position a competitive variable, not merely a human-resources issue. A board-level reversal could therefore alter the balance of the US-China AI race.

What happens to the AI trade and Anthropic’s IPO?

AI-related volatility has been a persistent market feature. The broader market rose on Monday after initial reports of Huang’s affair and the allegation that Alice Huang passed information to Beijing. The rise left two possible readings: investors expected Huang to survive, or the wider market can absorb the loss of one large figure.

Removing the sector’s most recognizable executive could produce more distinct turbulence. The effect would depend on whether Nvidia can install a credible successor quickly, maintain investor confidence and preserve its strategic position in the US-led AI competition.

Anthropic faces a separate timing problem. Nvidia replacing its chief executive as Anthropic prepares for an IPO would add volatility to a delicate market debut. Anthropic is also participating in a $26 billion private placement running alongside the IPO. The overlap links the IPO timetable to the turbulence surrounding Nvidia’s leadership.

How far can reputational fallout spread?

The personal-conduct allegations could prompt technology executives to reassess conflicts and security around intimate relationships involving staff with access to sensitive companies. The Nvidia case turns that concern from a general policy question into a board-level risk.

The transition could also precede the long-awaited release of Grand Theft Auto 6, a comparison the report used as a cultural marker for how quickly Nvidia’s succession story had accelerated.

Nvidia now faces the harder test of replacing a founder whose influence runs through its shares, AI strategy and competitive position against China.