Nvidia co-founder and CEO Jensen Huang resigned effective immediately on Thursday. The board of directors announced the leadership change amid an ongoing investigation into Huang’s personal conduct and allegations that he was the target of a foreign intelligence effort involving a Chinese executive.
Why did the board oust the CEO?
The board launched an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort. Reports surfaced that Huang engaged in an extramarital affair with Alice Huang, a Chinese tech executive whom U.S. officials suspected of spying, according to CBS News. Alice Huang is a top executive at the Singapore-based data company Megaspeed.
The Wall Street Journal reported that the Nvidia board met on Wednesday to deliberate on removing Huang from his position. Following these disclosures, the company confirmed that its board had been preparing for an ouster. Huang, who co-founded the company in 1993 with friends Chris Malachowsky and Curtis Priem, had been working with a crisis PR firm since last year to manage his personal communications.
Who is leading the company now?
The board of directors stated they will conduct a search for a permanent successor and will consider both internal and external candidates. Colette Kress, who is currently Nvidia’s chief financial officer, will serve as interim CEO.
“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,” board chair Harvey Jones said in a statement.
What is the impact on Nvidia stock?
Nvidia shares plunged as news of the turmoil emerged, with the stock dropping 10% in trading to hit a low of $148.80, the lowest point since mid-2025. The selloff weighed on the broader U.S. stock market, causing the S&P 500 and the Nasdaq to drop.
Some analysts suggest the market is conflating the person with the product. Mark Malek, CEO of Siebert Financial, said that the market may be confusing the value of Jensen Huang with the value of Nvidia itself, adding that Huang was likely more valuable to the firm five years ago than he is today.
Nancy Tengler, CEO and CIO of Laffer Tengler Investments, stated her firm intends to continue buying Nvidia stock ahead of earnings, citing strong chip demand.
How does this affect the broader AI industry?
Nvidia has become one of the most significant chipmakers globally due to its components serving as the foundation for AI computing servers. The company, which controlled roughly 90% of the GPU market as of September 2026, saw its value soar during the AI boom, becoming the first company to reach a $4 trillion valuation in the summer of 2025.
“This doesn't necessarily harm Nvidia in the short-term,” Ben Barringer, head of technology research at wealth management firm Quilter Cheviot, noted, adding that while the short-term outlook for Nvidia remains robust due to strong orders, the long-term risk to the wider AI ecosystem is significant, given Huang's influence on AI regulation, investment, and financing.
What happens next for the former CEO?
The Chinese government has denied the allegations, labeling them as baseless smears. Meanwhile, Nvidia faces scrutiny regarding its export strategy; Huang had been a vocal critic of U.S. export controls, which he argued created discrete American and Chinese tech ecosystems.
Huang had also worked to build a relationship with President Donald Trump to advocate for policies favorable to Nvidia, including opening markets to China. The company is set to provide updates on AI chip demand and its data center business on November 17.
Earlier coverage: Nvidia Shares Plunge as Board Reportedly Weighs Ousting CEO Jensen Huang