New York:Nvidia shares experienced a significant drop of more than 7% during premarket trading on Thursday following a report that suggested the company's board might be preparing to remove co-founder and CEO Jensen Huang from his position.

According to Anadolu Agency – English, the share price fell by 7.18%, or $12.48, reaching $161.25 at 0930GMT, compared to its previous closing price of $173.73. The Wall Street Journal reported that the board was set to meet to discuss Huang's future after revelations of two extramarital relationships, one allegedly involving an employee and another with a woman suspected by US intelligence of working for China. However, the report noted that no decision to remove Huang had been finalized.

Nvidia's board had previously announced on Sunday the initiation of an independent investigation following reports indicating that Huang might have been targeted by foreign intelligence efforts. The board assured that there was no indication of any compromise to US national security or company secrets, expressing confidence in Huang and his leadership team. Huang has reportedly supported the review and pledged his cooperation.

On Tuesday, the board's independent members confirmed that they had enlisted the services of former acting US Attorney Joon H. Kim and the law firm Wachtell, Lipton, Rosen and Katz to carry out the investigation. The recent drop in Nvidia's stock rekindled investor concerns about the stability of its leadership, especially being a key supplier of chips for artificial intelligence, after a brief rebound on Wednesday.