Nvidia shares plunge 13 per cent as Jensen Huang resigns as CEO
Colette Kress has been named interim CEO following the sudden departure of co-founder Jensen Huang from the chipmaker.
Nvidia shares fell more than 13 per cent in pre-market trading on Thursday after the company announced that Chief Executive Officer Jensen Huang has resigned. According to reports from The Tribune, the shares opened at USD 150.99, though they later recovered some losses to trade at USD 160.36, down 7.69 per cent.
The company confirmed that Huang has stepped down from his roles as President, CEO, and a member of the Board of Directors, effective immediately. Nvidia has appointed Chief Financial Officer Colette Kress as interim CEO while the board searches for a permanent successor. The board also named Harvey C.
Jones as its first-ever board chair.
The leadership change follows reports regarding alleged extramarital relationships involving Huang. India Today reported that the situation became more complex following allegations linking Huang to a businesswoman, Alice Huang, who is suspected by US authorities of spying for China. The company's board had launched an investigation into these matters.
Kress, who has served as CFO since 2013, said she is committed to building on the foundation created by Huang over his 33-year tenure. Jones expressed confidence in the current management, noting that Kress has a deep understanding of the business and its operations.
Nvidia is expected to evaluate both internal and external candidates for the permanent CEO position. The company is scheduled to announce its third-quarter fiscal 2027 financial results on November 17.