It may be that, but I feel it's more about managing public perception. Potentially leaking secrets to a literal (stated) enemy of state feels much more catastrophic than infidelity (obviously his wife may not feel that way).

If someone has been: 1. Managing the company well 2. Attracting and retaining good talent 3. Making money for shareholders 4. Building strong company fundamentals

Then forcing a resignation over this seems... odd. I was under the impression that barring this infidelity, Huang was one of the more sane tech CEOs. I feel like I could to literally any other CEO (Zuckerburg, Bezos, Musk, Ellison, Gates, Jobs) that have done something equally bad or worse, and haven't had to resign.