Nvidia Employees in Israel Fear Stock Plunge Amid CEO Scandal

By שירי חביב ולדהורן, אסף גלעד, שירי חביב ולדהורן, אסף גלעד

Translated & summarized from Mako by baba

CenterCharged tone

Hebrew · 2 newsrooms covering

Nvidia's stock has plummeted by up to 30% from its October high, causing significant paper losses for its approximately 6,000 employees in Israel. The decline follows revelations of CEO Jensen Huang's extramarital affairs, including one with an alleged Chinese intelligence agent. Employees who became millionaires during the stock's rise now fear for their financial future as their holdings have depreciated substantially.

The story in 5 lines · by baba

Nvidia's stock has fallen up to 30% from its October peak, impacting employees' holdings.
Approximately 6,000 Nvidia employees in Israel are concerned about their stock options and investments.
CEO Jensen Huang's extramarital affairs, including one with an alleged Chinese agent, triggered the stock drop.
Some Israeli employees have lost hundreds of thousands to millions of dollars on paper.
Huang was previously admired for his leadership and generous compensation packages to employees.

Nvidia's roughly 6,000 employees in Israel are reportedly concerned about the value of their stock options and holdings following recent turmoil at the tech giant. The company's stock has fallen significantly, with some employees losing hundreds of thousands of dollars on paper. This comes after years where many Nvidia employees, particularly in Israel, became millionaires due to the company's soaring stock price, largely driven by the AI revolution.

The crisis was triggered by revelations that CEO Jensen Huang had an extramarital affair with Alice Huang, whom the US government identifies as a Chinese intelligence agent. Further reports emerged of another affair with Kimberly Powell, a senior vice president within the company. Since the scandal broke, Nvidia's stock has dropped approximately 12%, and from its October peak, it has lost about 30% of its value.

Employees in Israel, working at offices in Yokneam and Tel Aviv, are worried not only about the leadership shake-up and its potential impact on the company's standing in Israel but primarily about the stock market's performance. Many had exercised stock options and purchased property during the boom, but still hold significant portions of their shares, which have now depreciated substantially. For some, the paper losses have reached millions of dollars.

Jensen Huang was previously viewed as a highly respected figure among Israeli employees, seen as a visionary leader. He was known for his direct communication, appreciation for teams, and generous gestures, including a $10,000 bonus for each employee during the Swords of Iron war and extra vacation days dubbed "Jensen's vacation." The stock component of compensation at Nvidia is substantial, with senior engineers earning significant monthly salaries that include stock options and cash. The company offers various equity awards like RSUs and PSUs, as well as an Employee Stock Purchase Plan (ESPP) allowing employees to buy shares at a discount.