Nvidia CEO Jensen Huang resigned on Thursday following reports of two extramarital affairs, including a relationship with a woman U.S. authorities suspect of spying for the Chinese government.
The chipmaker, which became the face of the artificial intelligence boom under Huang’s leadership, named Chief Financial Officer Colette Kress as interim CEO. The company also appointed board member Harvey C. Jones as its first-ever chair of the board, according to a company announcement.
NYT says Jensen Huang had a relationship Nvidia's vice president of health care. https://t.co/restNfM7wJ
— Post by @TheStalwart on X
Jones has been a technology executive and venture investor for over 30 years, including time as CEO and executive chairman of Synopsys, and has served on the Nvidia board since 1993.
Nvidia Shares Plunge Following Leader Resignation
Nvidia shares plunged 14 percent at the start of trading on Thursday following the resignation, wiping out nearly US$400-billion in value. The company’s stock price had already dropped 27 percent from its summertime peak through Wednesday amid investor concerns regarding Huang’s future and the firm’s lack of a succession plan, BNN Bloomberg reported.
Useful summary of situation – scandal affecting political climate in Washington and adding momentum to legislation to tighten export controls but unlikely to infringe upon Trump’s near-term leader-level diplomacy with Xi. https://t.co/XBrKH2QuXy
— Post by @ryanl_hass on X
Analysts, including Dan Ives of Yorkville, said that the company’s valuation must now be assessed without its longtime leader, who had guided the firm for 33 years since its founding in a Denny’s restaurant.
The board stated it is considering both internal and external candidates. “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,” the board said in its announcement. Kress herself said that she is committed to building on the foundation Huang created over his tenure.
Scrutiny Over Security and Conduct
U.S. intelligence officials believe she was recruited by China’s Ministry of State Security to gather information on the Nvidia CEO, according to reporting by NPR.
China’s Ministry of Foreign Affairs has denied these claims, calling them “entirely groundless, speculative and intended to smear and malign China,” Al Jazeera reported. Megaspeed, the company associated with Alice Huang, said that U.S. authorities found no evidence of illegal activity or illicit chip transfers during their inspections.
The situation expanded on Wednesday when The New York Times reported that Huang also engaged in an extramarital affair with Kimberly Powell, an Nvidia vice president of healthcare who reports directly to him.
Powell and Huang were reportedly “captured on video being affectionate” at a conference hotel in San Jose earlier this year, Business Insider noted. Powell, who joined Nvidia in 2008, had been a key figure in driving the company’s healthcare and medical imaging initiatives.
Huang, who co-founded Nvidia in 1993, addressed the initial reports in a letter to employees on Sunday. “I owe my family and all of you an apology,” Huang wrote. “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did.” Huang, who is also the company’s fourth-largest investor with a stake of approximately 3.61 percent, will exit the board as well.
Board Launches Investigation into Potential Intelligence Operation
The transition comes as Nvidia remains central to the global technological arms race. While some market observers, such as portfolio manager Jamie Murray, suggest the scandal may weigh on the stock for three to six months, they remain optimistic about the broader AI market.
Nvidia’s board of directors has launched an independent investigation, led by outside legal counsel, to determine whether Huang was the target of a foreign intelligence operation. The company is scheduled to report its third-quarter fiscal 2027 financial results on Tuesday, November 17, at 1:20 p.m. PT, followed by an earnings call at 2 p.m. PT.
As the search for a new CEO begins, observers like author Stephen Witt said that Huang’s role as a visionary for the chipmaker makes him difficult to replace.
Earlier coverage: What to Know About the Turmoil at Nvidia as Jensen Huang Resigns as CEO