Nvidia’s board is reportedly meeting to decide whether to oust chief executive Jensen Huang after revelations of a second extramarital affair, this time with an executive at the chip giant, sent its shares plunging.

The company’s directors are weighing the future of its billionaire founder following reports that Huang had a relationship with a female Nvidia executive who reported directly to him, according to the New York Times.

The new allegations come just days after Huang admitted to being unfaithful to his wife amid an investigation into his relationship with Alice Huang, a businesswoman suspected by US intelligence officials of working for China.

Nvidia shares fell around eight per cent in after-hours trading on Wednesday after the Wall Street Journal reported that the company was preparing to remove its chief executive.

The latest decline brings Nvidia’s losses to roughly $600bn (£452bn) in market value this week, as investors weigh the prospect of losing the man who has led the world’s dominant AI chipmaker for more than three decades.

Nvidia’s board is reportedly meeting to discuss whether to dismiss Huang, although no decision has been announced.

Huang acknowledged being unfaithful to his wife in a memo to employees on Sunday, taking “full responsibility” but offering no details about the relationship.

The controversy initially centred on Alice Huang, a former executive at Singapore-based Megaspeed whom US intelligence officials suspect of facilitating shipments of Nvidia chips to Chinese companies.

National security risks under review

The suspected affairs add growing scrutiny in Washington over Nvidia’s dealings with China and whether Huang’s personal relationships posed national security risks.

Democratic senators Elizabeth Warren and Chris Coons have called on the Trump administration to preserve documents relating to Nvidia’s chip exports and Huang’s alleged relationship with a Chinese intelligence operative.

In a letter to senior officials, the senators warned that the incident raised “significant concerns” about the government’s ability to enforce export controls and protect national security.

Republican lawmakers have also threatened to subpoena Huang unless he agrees to brief Congress on Nvidia’s security procedures and his interactions with Alice Huang.

John Moolenaar, chairman of the House committee on China, said lawmakers wanted to establish whether Beijing had accessed sensitive information or influenced US policy.

President Donald Trump, who has maintained close ties with Huang, confirmed earlier this week that the FBI was investigating the allegations but defended the Nvidia boss.

“I know the FBI is looking into it,” Trump told reporters, adding that Huang had assured him he was unaware of the woman’s alleged intelligence connections. “I really believe him”, he said.

The crisis has raised questions over Nvidia’s succession plans, with Huang owning around 3.6 per cent of the company and no publicly identified replacement.

The 63-year-old co-founded Nvidia in 1993 and has overseen its transformation into one of the world’s most valuable companies, supplying the chips underpinning the global AI boom.

His potential departure could unsettle an industry already grappling with concerns over the vast sums being poured into artificial intelligence infrastructure.

Elon Musk weighed in on Wednesday, saying it would “be an honour” to hire Huang after an investor suggested the Tesla boss should recruit him.

Musk also backed calls for Nvidia’s board to await the outcome of its investigation before making a decision.