Nvidia shares plunged 13 percent in early trading on Thursday following the immediate resignation of CEO Jensen Huang, who has led the company since its founding in 1993.
The departure follows intense public and board scrutiny regarding multiple extramarital affairs, including one involving a woman suspected by United States intelligence of being a Chinese spy.
The company has appointed chief financial officer Colette Kress as interim CEO while it considers both internal and external candidates for a permanent replacement. In a significant shift in corporate governance, longtime director Harvey Jones has been appointed as Nvidia’s first-ever board chairman. Previously, the company operated without a permanent chair, and the lead director was chosen annually by a majority of the board.
The transition arrives as the company grapples with the fallout of an internal investigation—led by independent directors with outside legal counsel—into whether Huang had been targeted by a foreign intelligence operation.
That would be an honor
While Nvidia stated it had “no reason to believe” company secrets or national security were compromised, the revelation of these relationships, including an affair with Nvidia’s vice president of healthcare, Kimberly Powell, and a second unnamed employee, marked a turning point for the executive.
Ives characterized the search as a massive challenge, noting that “there is no succession plan and it would be a stretch to find a candidate internally to replace Jensen.”
Industry observers have identified several potential candidates for the permanent role. Among the names surfacing in discussions are Sanjay Mehrotra, who has led Micron Technology through major industry cycles; Nikesh Arora, the head of Palo Alto Networks since 2018; and Google Cloud CEO Thomas Kurian.
Internal candidates mentioned include vice president Ian Buck, a key figure in the development of the CUDA software platform that proved central to the company’s modern artificial intelligence operations. External possibilities cited in reports include Arm CEO Rene Haas and Apple’s chief hardware officer, Johny Srouji.
The search process is being assisted by an outside firm engaged by the board to identify potential leadership. Jay Aldebert, who has analyzed the firm’s structure, suggested the board might move away from the model of a single all-powerful founder.
It may be creating a leadership structure that does not require one person to fill his entire role. “What matters most is showing the market that Nvidia is a business, not a person,” Aldebert said.
The company's stock has fluctuated heavily, shedding over 30 percent of its value since reaching a peak in early October. Analysts like Jun Bei Liu have said that the departure leaves the global AI trade in a precarious position, given that Huang was the central figure in the company’s expansion and its complex financial arrangements that support cloud data center businesses.
President Donald Trump, a vocal supporter of the former CEO, commented on the situation via his Truth Social platform.
“There is only one man to take his place — TIM COOK of Apple. A legend replaces a legend,” Trump wrote, asserting that Huang had “done a fantastic job.” Trump also shared that he had spoken with Huang, who claimed he had “absolutely no idea that the person in question was a spy.”
As the company moves forward, it continues to navigate its most significant leadership transition in over three decades. Huang, who admitted to being “unfaithful to my wife” in a public statement, has stepped away entirely.
Earlier coverage: Nvidia CEO Jensen Huang Resigns