Nvidia prepares to oust Jensen Huang, WSJ reports — stock sinks

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Shares of Nvidia fell more than 7% in after-hours trading on Wednesday after The Wall Street Journal reported that the company's board is preparing to oust CEO Jensen Huang.

The news landed minutes after The New York Times reported that Huang had an extramarital relationship with another executive at the company.

The alleged relationship was with Kimberly Powell, vice president of health care at Nvidia, according to the report. Powell's bio on the Nvidia website says she's "responsible for the company's worldwide healthcare business, including hardware and software platforms for accelerated computing, AI, and visualization that power the ecosystem of medical imaging, life sciences, drug discovery, and healthcare analytics."

Huang and Powell were reportedly captured on camera being affectionate with one another at a hotel in San Jose, California in March, according to the Times.

Nvidia did not immediately respond to CNBC's request for comment. Heller, the crisis PR firm Huang reportedly hired as early as last year, did not immediately respond to CNBC's request for comment.

The report comes days after Huang admitted to an affair with a woman who is believed by U.S. intelligence of being a Chinese spy. The CEO was romantically involved with Alice Huang, according to The Financial Times, who U.S. intelligence officials believe is a spy for China's Ministry of State Security, The New York Times reported.

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Nvidia's board of directors has opened an independent investigation and hired the law firm Wachtell, Lipton, Rosen & Katz to look into the spying allegations.

"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," Huang wrote in the message to Nvidia staff on Sunday. "I am deeply sorry."

—CNBC's Lora Kolodny and Kif Leswing contributed to this report

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