Nvidia shares dropped more than 8% after hours on Wednesday, November 11, 2026, after the Wall Street Journal reported that the board was preparing to remove chief executive Jensen Huang. No official decision has been announced. This analysis separates confirmed facts from reported nuances, and looks at what the episode means for the stock, the AI sector and the company’s governance.
🔑 Key takeaways
- Shares fell more than 8% after the close, with a low near $156.14 on Hyperliquid perpetual futures.
- No formal board decision has been made, and outlets differ on how far the process has advanced.
- An internal probe into a possible foreign intelligence effort, and a personal relationship reported by The New York Times, are at the center of the story.
- Prediction markets priced a sharply higher chance of departure: 64% on Kalshi and between 67% and 71% on Polymarket.
A late-session slide built on reports, not decisions
The move began after Wall Street’s close. Yahoo Finance put the stock at $159.51, while The Block and MarketWatch reported declines of more than 8%. The reports came from the Wall Street Journal, The New York Times and CNN, which agree on one point: Nvidia’s leadership and the future of its founder and chief executive are under discussion at the board level.
Price action outside regular hours
- Hyperliquid: NVDA-USDC perpetual contracts started falling around 5 p.m. ET, with a maximum drop of 10% and a low near $156.14.
- At 7:50 p.m. ET, the contract traded at $158.86, down 6.8% over 24 hours.
- The tokenized NVDAx stock from xStocks fell as much as 9% before rebounding to $159.51.
- S&P 500 futures lost 0.4% and Nasdaq 100 futures lost 0.8%.
A perpetual future is a contract with no expiry, traded continuously. These venues often move ahead of the spot market when liquidity thins outside trading hours, so the Hyperliquid decline reflects that dynamic rather than a confirmed board action.
Media accounts diverge on how far the board has moved
The Wall Street Journal, the first outlet to report the matter, said the board was preparing to oust Huang. The Block said the board could meet as early as Wednesday, while CNN, citing two sources, described a review of his position. According to CBS News, cited by Yahoo Finance, the Trump administration had been briefed on the board’s plans. No meeting or decision has been confirmed.
| Outlet | Wording | Level of commitment |
|---|---|---|
| Wall Street Journal | Preparing to oust Huang | High |
| MarketWatch | Preparing to remove the CEO | High |
| The Block | Possible meeting as early as Wednesday | Medium |
| CNN (two sources) | Review of his position | Moderate |
The phrase “preparing a replacement” is therefore more committal than “weighing his future”. Investors should treat these accounts as press reports, not as a formal board decision.
Personal and security questions at the heart of the story
According to The New York Times, Huang had a relationship with Kimberly Powell, Nvidia’s vice president for healthcare, who has been with the company since 2008 and reports directly to him, according to MarketWatch. Two former employees told the paper the couple had shown affection at a San Jose hotel during an Nvidia conference in March. The paper also reported that Huang was already under investigation over another alleged relationship, with Alice Huang, a Chinese businesswoman unrelated to him.
U.S. intelligence agencies reportedly suspected Alice Huang of being an asset of China’s Ministry of State Security. CNN identified her as a former director of Megaspeed, an Nvidia customer whose China-linked activities had drawn the attention of U.S. authorities. On November 8, Nvidia announced an investigation to determine whether Huang had been “the target of a foreign intelligence effort”. The board reportedly hired a law firm for the review.
“There is no excuse for what I did. I am deeply sorry.”
Jensen Huang, CEO of Nvidia, message to employees
Huang acknowledged on Sunday that he had engaged in an extramarital affair without naming the person involved, and apologized to his wife and their two children, who also work at Nvidia. The company’s code of conduct tells employees to “maintain high ethical standards” and to avoid personal relationships that could create a conflict of interest. The 11-member board includes Huang; all other members are described as independent.
Market reaction and the odds
According to Yahoo Finance, Nvidia’s market capitalization has fallen by more than $450 billion since the investigation was announced on November 8. CNN cited a loss of more than $300 billion over the single week. The figures do not necessarily conflict, because they use different reference periods.
| Indicator | Level | Source |
|---|---|---|
| Huang departs before November 13 (Kalshi) | 64%, up from about 37% a few hours earlier | Kalshi |
| Departure by November 12 (Polymarket) | 67% | Polymarket |
| Departure by November 13 (Polymarket) | 71% | Polymarket |
| Market value lost since November 8 | More than $450 billion | Yahoo Finance |
These levels reflect market expectations, not confirmation of a board decision. In Asia, South Korea’s Kospi fell 0.3%, with Samsung Electronics up 1.6% and SK Hynix down 0.6%, while Japan’s Nikkei 225 gained 0.2%. Nvidia was down 5.5% in premarket trading on Thursday and nearly 7% since Friday, following the first report on the alleged espionage affair.
“The news is obviously negative, since Jensen is arguably the most prominent leader of the most prominent company, at the center of the most important industry in the world – someone who anticipated the AI boom years before ChatGPT arrived and made sure the company he founded was ready to capitalize on it.”
Adam Crisafulli, Vital Knowledge
Succession and the geopolitical dimension
Nvidia has no clearly established public succession plan. CNN highlighted Huang’s two children, who already hold senior roles: Spencer Huang leads the robotics division and has been at the company since 2022, while Madison Huang, senior marketing director, has been there since 2020. Asked by Bloomberg last month about Madison, Huang said:
“If that’s their ambition… they have to earn it. It’s really very hard work, and it demands a lot of sacrifice.”
Jensen Huang, CEO of Nvidia, interviewed by Bloomberg
Neil Wilson, a strategist at Saxo, said a decision to remove Huang would be “a big negative for the stock and the sector at large”, and asked whether it would “dent the broader tech rally”. The stakes reflect the founder’s historical weight. Huang co-founded Nvidia in 1993 with Curtis Priem and Chris Malachowsky. A $5 million investment from Sega rescued the company from imminent bankruptcy after a failed 3D chip. CUDA later extended the use of its chips beyond graphics, and in 2016 Huang delivered to Elon Musk the first Nvidia AI supercomputer for OpenAI, then little known.
The scandal also carries a geopolitical dimension. Born in Taiwan and raised partly in Thailand before settling in the United States, Huang has long positioned himself as a bridge between the two countries. According to a CNN source, Secretary of State Marco Rubio told Trump in May that Huang was involved with a potential Chinese spy. Trump said publicly on Monday that he was unaware of the allegations and expressed support for Huang. Beijing again rejected the espionage accusations. Foreign Ministry spokesperson Mao Ning said: “Our technological progress is driven by independent innovation and open cooperation.” The developments come ahead of Trump’s trip to Shenzhen for the APEC summit, where a meeting with Xi Jinping is expected.
Outlook and scenarios
Three scenarios stand out. In the first, no decision is taken and the rumors fade. The stock could then recover, supported by AI fundamentals, though a governance risk premium would likely persist. In the second, the board confirms a departure. Succession uncertainty, the loss of a defining leader and pressure on the share price would become the main factors to watch, along with the question of an internal transition involving the founding family.
In the third, the national security investigation widens and reaches Nvidia’s China-linked customers. The regulatory risk would then center on chip export rules and controls affecting partners. Investors should monitor official Nvidia statements, any board meeting, and decisions in Washington and Beijing. For now, the available figures are market signals, not decisions.
Sources
Cet article est publié à titre informatif et éducatif. Il ne constitue en aucun cas un conseil en investissement. Faites vos propres recherches (DYOR) avant toute décision.
