Key Notes
- Nvidia directors are reportedly preparing to replace Jensen Huang and searching for potential successors.
- Some directors favor CFO Colette Kress as interim CEO, while Musk welcomed a suggestion that he hire Huang.
- Senators Elizabeth Warren and Chris Coons asked the administration to preserve Nvidia’s China chip-export records.
Nvidia (Nasdaq: NVDA) shares fell as much as 10% in late trading Wednesday as reports that directors were considering replacing chief executive Jensen Huang turned a personal-conduct scandal into an immediate succession question for the AI chipmaker.
The Wall Street Journal reported Wednesday that directors were preparing to oust Huang. The board met that day to decide his future, Reuters reported, citing a person familiar with the matter. Nvidia did not immediately respond to its request for comment. The company had not announced a leadership change as of 08:13 UTC on November 12.
Directors Consider an Interim CEO
Directors have been working with an outside firm to identify potential replacements and are considering a temporary chief while searching for a permanent successor, Bloomberg reported, citing a person familiar with the discussions.
Some directors favor chief financial officer Colette Kress as interim CEO, according to Semafor. Its reporting also described discussions about adding a chief operating officer alongside an interim leader. A senior administration official told the outlet that Nvidia’s board had briefed the White House on the planned meeting.
The deliberations follow a second allegation involving Nvidia healthcare executive Kimberly Powell. Huang had already acknowledged infidelity in a November 8 employee letter, without naming the other person, as directors opened an inquiry into earlier reports of a foreign intelligence effort targeting him.
Late Selling Erases Nvidia’s Rebound
Nvidia’s stock had closed Wednesday at $173.73, up 2.87%, before the new reports reversed the recovery. Bloomberg’s account put the worst after-hours decline at 10%.
At 8 p.m. Eastern time on November 11, MarketScreener showed $158.84, down 8.57% from the regular close. That late-trading quote implies a market value of about $3.83 trillion using the 24.1 billion shares listed in CNBC’s company data.
On the same share count, that is roughly $2 trillion below the valuation implied by Nvidia’s October 6 high of $243.37. The comparison begins at the October peak and includes the earlier retreat in AI stocks, rather than measuring only the fallout from the affair reports.
Musk Responds to a Hiring Suggestion
Elon Musk offered public encouragement as the succession reports spread. Responding to a ZeroHedge post urging him to hire Huang, Musk wrote on X: “That would be an honor.”
The reply did not specify a position or company, announce an offer or say that the two executives were in employment talks.
That would be an honor
– Elon Musk (@elonmusk) November 12, 2026
Senators Seek China Chip-Export Records
Democratic Senators Elizabeth Warren and Chris Coons asked the Trump administration to preserve documents tied to Nvidia’s chip exports to China and Huang’s relationship with a suspected Chinese intelligence operative, Reuters reported.
Their letter went to Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio and White House chief of staff Stephen Miller. The senators also requested a congressional briefing on the national-security risks raised by the suspected intelligence operation and questioned whether officials had taken appropriate defensive action.
Departure Bets Rise Ahead of Earnings
A Kalshi contract on Huang leaving the CEO position before July 1, 2027 last traded at 87 cents in data retrieved at 08:12 UTC on November 12, implying an 87% probability.
The contract requires Huang to actually leave the role and for that departure to be announced by him or on his behalf before the deadline. An announcement of a future departure alone does not qualify.
Independent directors appointed former acting US Attorney Joon H. Kim and Wachtell, Lipton, Rosen & Katz on November 10 to conduct their investigation. In their original November 8 statement, directors expressed confidence in Huang and said they had no reason to believe national security or Nvidia secrets had been compromised.
Nvidia’s fiscal third-quarter results are due November 17, followed by an analyst call at 5 p.m. Eastern time.
