Nvidia shares fall 8% after CEO ouster report

Nvidia (NASDAQ:NVDA) shares fell more than 8% in after-hours trading on Wednesday after The Wall Street Journal reported that its board was preparing to remove co-founder and CEO Jensen Huang.

Reuters reported that the board was meeting late Wednesday to decide Huang's future, marking a shift from its November 8 statement expressing confidence in him and his leadership team.

The board's earlier statement announced an independent investigation into reports that Huang had been targeted by a foreign intelligence effort, adding that it had no reason to believe company secrets or US national security had been compromised.

The latest reports followed allegations of two extramarital relationships involving Huang, including one involving a company executive, although Reuters said it could not independently verify the second report.

Huang co-founded Nvidia in 1993, owns approximately 3.6% of its shares and has no obvious successor, while the company is scheduled to report quarterly results on November 17.

Following the announcement, the Nvidia share price was down more than 8% at approximately $159.51 in after-hours trading, compared with its regular-session close of $173.73.