NVIDIA's stock price tumbled significantly after the market closed on Wednesday, and investors began to face a possibility: the person in charge of the company may no longer be CEO Jensen Huang.

NVIDIA's stock price fell by 9% after the market closed. Media reports indicated that the CEO had a relationship with one of his direct subordinates, which led to the stock price decline in after-hours trading. Subsequent media reports stated that NVIDIA's board of directors was preparing to remove Jensen Huang from his position, causing the stock price to fall even further.

"This will be a very tricky situation," said Michael O, Chief Market Strategist at Jonestrading. "Jensen Huang previously predicted that sales this year would grow by 70%. Considering the supplier financing and his aggressive business tactics, his successor will be busy putting out fires and cleaning up the mess for the next year."

"If an independent investigation confirms these allegations, it is expected that the board of directors will remove him from his position. This is a basic requirement of corporate governance today. What's worse, this is not an isolated incident," he added.

As concerns about the strong momentum and sustainability of artificial intelligence (AI) trading grow in the market, NVIDIA's stock price has already been under pressure. NVIDIA is scheduled to release its quarterly earnings on November 17th.

Dec Mullarkey of SLC Management said, "What is worth noting is how they will handle next week's earnings conference call. The Chief Financial Officer can handle the financial data, but the market will want to know more about the governance adjustments."

It's hard to imagine that he will step down, but it's also difficult to imagine how he could continue to remain in his position. I think the board of directors will eventually be forced to let him go and establish a more traditional organizational structure. The problems exposed in terms of judgment may make it very difficult to repair the relationship between the company and its important customers.