Nvidia's board is preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with ​a suspected Chinese spy, the Wall Street Journal reported ‌on Wednesday, citing people familiar with the matter.

The board is preparing to meet as soon as Wednesday to determine his future, the report added.

Chip stocks dropped in extended trading. Nvidia fell 8%; Direxion Daily Semiconductors Bull 3x Shares and Super Micro Computer fell 4%; Intel, NXP Semiconductors, and ON Semiconductor fell 3%; VanEck Semiconductor ETF, Marvell Technology, Micron Technology, and TSMC fell 2%.

While Nvidia’s competitor Broadcom rose 3%, AMD rose 4%.

Neocloud stocks also sank in extended trading. CoreWeave fell 7%; Iren and Cipher Mining fell 5%; Nebius and Galaxy Digital fell 4%; TeraWulf, Applied Digital, and Hut 8 fell 3%.