Nvidia slides after reports of a second Huang affair, this time with an employee

Nvidia shares fell 4.5% in after-hours trading Wednesday after the New York Times reported that CEO Jensen Huang had a second affair. The relationship was with Kimberly Powell, Nvidia’s vice president of health care, according to people cited by the Times.

The stock finished Wednesday’s regular session higher, recouping some of its losses from the previous two sessions, when investors sold off shares following reports of Huang’s extramarital affair with Alice Huang, a suspected Chinese spy who shares his surname. The chipmaker’s board opened an independent investigation and hired a law firm to look into the spying allegations. Nvidia’s market capitalization is down 7% since the start of the week.

Huang, 63, and Powell, 48, were caught on video “being affectionate” at a San Jose hotel in March while Nvidia was holding a conference in the city, the Times reported. The daily said it had not seen the footage. Both are married to other people.

Rumors of an affair between the two executives had circulated for years, in part because Powell has no educational or professional background in health care or science, a former Nvidia employee told CNBC on condition of anonymity. Nvidia did not immediately respond to CNBC’s request for comment.

After news of Huang’s second affair broke, several news outlets reported that Nvidia’s board was preparing to oust him.