Nvidia shares fell 8.3% in after-hours trading after The New York Times named Kimberly Powell as the senior executive with whom CEO Jensen Huang allegedly had an extramarital relationship. Neither has confirmed the claim, and the stock kept sliding a day later.
Who Is Kimberly Powell, the Nvidia Executive Named in the Report?
Powell, 48, has led Nvidia’s healthcare group since 2017, according to CNBC. She studied electrical engineering at Northeastern University, then worked at Dome Imaging Systems and Planar Systems before joining Nvidia in 2008.
Her brief was to make Nvidia’s graphics processors the accelerator of choice for medical imaging equipment. Her LinkedIn profile shows a promotion to senior director of AI business development in 2016.
Under her watch, the business added platforms such as BioNeMo for AI-driven biology and drug discovery. She has said, ‘AI is the biggest technological breakthrough of our lifetime.’
What Did the New York Times Report Claim?
- The NYT cited five people who worked at the company and said Powell reported to Huang.
- Powell is among roughly 60 executives who report directly to Huang.
- The NYT said both are married to other people.
- The NYT said Huang and Powell were seen being affectionate at a San Jose hotel during Nvidia’s GPU Technology Conference in March, but it had not seen any footage.
- Powell did not respond to the NYT. Huang and Nvidia declined to comment.
Huang admitted in a note to staff last Sunday that he had been unfaithful to his wife. The Daily Beast reported that Powell is married to Graham Gerade, 54, who is not accused of any wrongdoing.
How Far Did Nvidia Shares Fall, and What Triggered the Slide?
Nvidia’s board announced an independent investigation into reports that Huang was the target of a foreign intelligence effort. The relationship he admitted to was widely reported to be with Alice Huang, a Chinese citizen and former senior executive at Singapore-based data centre company Megaspeed.
US intelligence reportedly circulated a memo alleging she was an asset of China’s Ministry of State Security, which Beijing has rejected. The Wall Street Journal reported that the board was preparing to meet to decide Huang’s future, and Huang has no publicly known succession plan.
What Does Nvidia’s November 17 Result Mean for Shareholders?
Nvidia is due to report third-quarter results in five days, on November 17. Analysts and investors will read those numbers against a governance question the board has not yet answered.
If the allegations are borne out, a relationship between the CEO and a direct report raises questions of governance and workplace conduct. Nvidia also sits at the centre of the US-China technology rivalry, where its chips are a pressure point.
No Bursa Malaysia-listed company is named in this story, so there is no local stock code to track yet. Malaysian investors interested in US-listed names should first check their account setup, using this guide to Trading Account Types in Malaysia.
Key Takeaways
- Nvidia shares fell 8.3% in after-hours trading after the NYT report.
- Kimberly Powell has led Nvidia’s healthcare group since 2017, and the claims remain unconfirmed.
- The board is reportedly preparing to decide Jensen Huang’s future, with no known succession plan.
- Nvidia’s third-quarter results are due on November 17, the next test for shareholders.
This article is for information only and is not financial advice. Malay Mail has not independently verified the allegations. Do your own research before making any investment decision.
Frequently Asked Questions
Did Nvidia confirm the Kimberly Powell report?
No. Huang and Nvidia declined to comment, and Powell did not respond to The New York Times. Malay Mail has not independently verified the allegations.
How much did Nvidia shares fall after the report?
Nvidia shares fell 8.3% in after-hours trading on the evening the NYT report was published, and continued to slide a day later. The Wall Street Journal reported that the board was preparing to meet on Huang’s future.
When does Nvidia report its third-quarter results?
Nvidia is due to report third-quarter results on November 17, five days after the report. Investors may want to watch how the company addresses its leadership and governance questions in those results.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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