Nvidia Falls More Than 3% After Hours After NYT Reports Alleged Extramarital Relationship Involving Jensen Huang

Nvidia shares fell more than 3% in after-hours trading after allegations surfaced of an extramarital relationship between Chief Executive Officer Jensen Huang and a company executive. The stock had risen during the regular session alongside a rebound in semiconductor shares before reversing lower after the close.

The New York Times reported on Nov. 11 that Huang was alleged to have had an extramarital relationship with Kimberly Powell, Nvidia's vice president overseeing the company's global healthcare business. Following the report, Nvidia shares fell $5.81, or 3.34%, in after-hours trading.

Powell is a senior executive leading Nvidia's efforts to apply AI technology to the healthcare industry. According to the company's website, she oversees hardware and software platforms based on accelerated computing, AI and visualization technologies used in medical imaging, life sciences, drug development and medical data analysis.

The drop came just after buying returned to AI-related stocks. In the regular session, the Philadelphia Semiconductor Index rose 5.7% as stronger CoreWeave earnings and a higher revenue forecast eased concerns about a slowdown in AI spending. Nvidia also rebounded from steep declines over the previous two sessions, but sentiment weakened after the report involving Huang emerged following the market close.

The alleged extramarital relationship was raised in a media report, and the specific details have not been confirmed. There was no official response or explanation from Nvidia, Huang or Powell.