Nvidia's board of directors is preparing to fire Jensen Huang. He founded the company and has been its only CEO in its entire history. The board is already looking for a replacement.
The stock closed Wednesday in the green, but in the evening session it fell to $157. The evening session is trading after the main session closes.
This concerns traders beyond a single stock. Nvidia is one of the largest companies in the S&P 500, so its move drags the entire index with it.
What happened to the price?
- $173.73 - main session close on November 11, up 2.92%.
- $157.00 - price after the close, down 9.63%.
- 7% - how much perpetual futures on Nvidia lost on the Hyperliquid platform.
The entire daily gain was erased within a few hours. A perpetual future is a contract with no expiration date.
Why did the board turn around?
The trigger was a publication by The New York Times. The newspaper wrote about Huang's second extramarital affair.
- Kimberly Powell - Nvidia's vice president of healthcare, has worked at the company since 2008 and reports directly to him.
- Nvidia's code of conduct requires avoiding conflicts of interest due to personal relationships.
- The Wall Street Journal reported a few minutes later that the board was preparing for the CEO's resignation.
The meeting could have taken place as early as November 11. No decision has been officially announced.
What happened before that?
- On November 8 the board stated that it "trusts Jensen and his team."
- The first story - an affair with Alice Huang of Singapore-based Megaspeed, which US intelligence considers linked to Chinese intelligence. The board launched an independent investigation into it.
- Huang himself admitted the infidelity in an address to employees on November 8.
- On November 9 Trump said the FBI was looking into the situation and that the White House did not intend to interfere in the board's decision.
What does this mean for traders?
Nvidia has not disclosed a succession plan. CFO Colette Kress is named as interim head.
Key point: Polymarket bets give 83% odds that Huang leaves by the end of the month. Polymarket is a venue where people trade on the outcomes of events.
What's next?
- November 17 - third-quarter earnings report.
- November 18 - closed-door briefing for Republicans in Congress.
Both dates are worth marking in the economic calendar. It's easier to check the list of available markets against the prop firm catalog.
Held NVDA through the market close?
An evening like this blows up stop losses: the price moves in the post-market, but in your terminal you can no longer trade it. Prop firms handle this differently: some have individual US stocks on their list, some offer only index contracts, and holding a position overnight before an earnings report counts as a violation. The opening gap still falls entirely within the daily loss limit. You have until November 17 to check the terms.