Nvidia shares drop 8% after reports of CEO Jensen Huang's potential ouster

Nvidia's shares declined approximately 8% in after-hours trading on Wednesday, according to the San Francisco Standard. This drop followed reports from The Wall Street Journal that the company's board is considering removing CEO Jensen Huang.

The reports about Huang's potential ouster surfaced shortly after The New York Times revealed that Huang had been involved in a second extramarital affair, this time with a subordinate at Nvidia. Bloomberg added that the board is collaborating with an external firm to find a replacement CEO.

Because these reports emerged after the stock market's regular session, the after-hours trading volume was low, which can cause more pronounced price swings. The market's reaction during Thursday's opening session will provide a clearer indication of investor sentiment moving forward.

Nvidia has grown into one of the most valuable companies globally, and these developments come just before Anthropic's anticipated historic initial public offering, adding to market anxiety surrounding the AI sector.