BUZZ - Nvidia stock drops after board meeting decides on CEO Jensen Huang’s future

November 12 - ** NVIDIA (NVDA.O) shares fell 6.9% in pre-market trading

** According to a person familiar with the matter who spoke to Reuters, the company's board (link) is holding a meeting to decide whether to remove CEO Jensen Huang

** The board meeting comes as the company is dealing with the fallout from reports that its longtime leader was involved in two extramarital affairs

** NVIDIA has not yet responded to requests for comment regarding the late-night board meeting held on Wednesday

** According to NVIDIA's bylaws (link), Jensen Huang can be removed by a majority board vote "with or without cause"

** NVIDIA has 11 board members, all of whom are considered independent directors except for Jensen Huang

** Brokerages Oppenheimer and Bernstein each downgraded the stock to "perform" and "market perform" respectively; Bernstein halved its price target to $200

** "We believe this position will face tremendous succession pressure, and there is currently no clear successor. His departure is a major event and could change the investment logic for the stock," said an Oppenheimer analyst
** "We think Jensen Huang's departure may put long-term pressure on the share price" — Oppenheimer

** NVDA has fallen 6.8% year-to-date

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