Can NVIDIA fire Jensen Huang amid China spy probe?
What's the story
NVIDIA's board has initiated an independent investigation into claims that CEO Jensen Huang was the target of a foreign intelligence operation. This comes after the chipmaker's CEO admitted to an extramarital affair with a woman suspected by US intelligence officials of working for Beijing. The development has raised questions about Huang's future at NVIDIA, which he founded over three decades ago.
Removal rights
Board has confidence in Huang
NVIDIA's corporate filings show that its directors can remove Huang as CEO, even without proving misconduct.
The company's board has expressed confidence in Huang and hasn't announced any plans for his replacement.
On November 8, NVIDIA revealed that a committee of independent directors would investigate claims of Huang being targeted by a foreign intelligence operation.
This came after reports about his relationship with Alice Huang, a former executive at Singapore-based data center company Megaspeed.
Investigation details
Alice suspected of spying for China
Alice has been suspected by US intelligence officials of gathering information for China.
Megaspeed reportedly bought over $4.8 billion worth of NVIDIA chips in two years and was also under scrutiny for allegedly helping Chinese customers acquire advanced processors restricted under US export controls.
Despite these allegations, the board has said it has no reason to believe that national security or company secrets have been compromised.
CEO's admission
What do the bylaws say?
In a message to employees, Huang admitted to infidelity, apologized to his family and colleagues, and pledged cooperation with the investigation.
NVIDIA's amended bylaws allow for the removal of corporate officers at any time "with or without cause," through an affirmative vote by a majority of directors in office.
This means that even without proving misconduct or breach of company policy, the board can dismiss Huang as CEO.
Shareholder influence
Huang owns about 3.58% of NVIDIA stock
Huang has a significant stake in NVIDIA, owning about 870.6 million shares or 3.58% of its outstanding stock as of March 23, according to the company's May 2026 proxy statement.
However, this doesn't guarantee his position as CEO or director is safe from removal by the board.
The decision to remove him from the board would require approval from shareholders holding a majority of the company's outstanding voting power if removed for cause, or two-thirds if removed without cause.
Policy violations
Investigation could examine various issues
The allegations against Huang involve his relationship with a former executive at an external customer, which is unlike previous cases where CEOs faced discipline for violating non-fraternization policies with employees.
NVIDIA's 2026 proxy statement says directors, officers and employees must avoid activities that conflict with or appear to conflict with the company's interests.
The investigation could look into issues related to confidential information, customer relationships and compliance with company policies.
Uncertain future
Trump backs Huang, calls him a fine person
Despite the ongoing investigation, Huang continues to serve as NVIDIA's chief executive. The board has appointed independent investigators and expressed confidence in his leadership.
US President Donald Trump also backed Huang, calling him a fine person and suggesting he should stay in charge.
However, the board's findings are yet to be released and no violation of NVIDIA's policies has been established so far.