Nvidia set to lose over $600 billion as CEO faces possible ouster
Summary
Nvidia shares fell sharply in pre-market trading after reports about CEO Jensen Huang’s personal relationships, leaving the company on track to lose more than $600 billion in market value since Friday’s close. The article says Nvidia’s board is weighing Huang’s future; analysts differ on how his departure could affect the company, while investors also question whether heavy investment in AI will pay off.Key Facts
- Nvidia shares fell nearly 9% to $158.35 in pre-market trading.
- The stock had lost 9.6% over Monday and Tuesday, according to the article.
- The article reports that Nvidia’s board is considering whether to remove CEO Jensen Huang.
- The article links the share decline to reports about Huang’s relationships, including an alleged affair with Alice Huang, a Chinese business executive who is not related to him.
- The New York Times separately reported that Huang had an affair with Kimberly Powell, Nvidia’s vice president of healthcare, citing company employees.
- Analyst Dan Ives estimated Nvidia shares could be worth $225 if Huang left, compared with $300 if he stayed.
- Analyst Ipek Ozkardeskaya said Nvidia’s products and software ecosystem would remain valuable even if Huang departed.
- The article says investors are concerned about whether AI-related profits will justify large investments in the technology.
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