Nvidia (NASDAQ:NVDA) stock was plummeting this past Thursday, down about 5% in morning trading after CEO Jensen Huang abruptly resigned following reports in The New York Times of extramarital affairs.
The S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite were all down on Nov. 12, but all by less than 1% in morning trading, as the move was likely already priced in by investors. Nvidia stock is down about 11% over the past five days and 29% over the past month.
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It is an unprecedented development at the world’s second-largest company, one that may leave many investors wondering what the next steps are.
Jensen Huang. Image source: Getty Images.
Kress takes over
One of Huang’s affairs was with a Chinese businesswoman who was reportedly recruited by Chinese intelligence to gather information on Nvidia. It led the Nvidia board to conduct an investigation into the matter. The New York Times also reported on Nov. 11 that Huang had an affair with an Nvidia employee.
Huang apologized on Nov. 8, stating in a letter to employees: “I owe my family and all of you an apology. I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
Four days later, on Nov. 12, Huang resigned from the company that he co-founded in 1993 and has led as CEO for 33 years. He built Nvidia into the largest company in the world in November 2024. It is currently second only to Apple, with a market capitalization of $4 trillion. Nvidia, which makes graphics processing units (GPUs) for AI data centers, became the driving force in the AI boom and Huang became the face of the AI revolution.
Colette Kress, Nvidia’s longtime chief financial officer, was named the interim CEO, effective immediately. “The Board has full confidence in Colette and the leadership team, and we expect the company’s operations, customer commitments and product roadmap to continue without interruption,” Harvey Jones, chair of the Nvidia board, said.
Kress has been with Nvidia since 2013 when she joined as CFO. “We will continue advancing the work that has made Nvidia a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers, and shareholders,” Kress said.
