Nvidia shares plunge 13 per cent as CEO Jensen Huang resigns
The departure of the co-founder follows reports of alleged extramarital affairs and scrutiny regarding a connection to a suspected Chinese spy.
Nvidia shares fell by as much as 13 per cent on Thursday after co-founder and chief executive Jensen Huang resigned. The leadership change has impacted the wider artificial intelligence sector, with shares of CoreWeave dropping 13.6 per cent and Nebius falling 20 per cent in premarket trading, according to India Today.
The company announced that Chief Financial Officer Colette Kress will serve as interim CEO while the board seeks a permanent replacement. Additionally, board member and former Synopsys CEO Harvey Jones has been appointed as the company's first board chairman. Huang, 63, will also leave the board.
The resignation follows reports of alleged extramarital relationships. BusinessLine reported that the board met on Wednesday to consider his removal after allegations surfaced regarding an affair with a senior executive. Further reports linked Huang to Alice Huang, a businesswoman whom US authorities suspect of spying for China.
Donald Trump said on Sunday that Huang had done an amazing job for the country and noted that Huang claimed he was unaware the woman involved was a spy, according to BusinessLine.
The sell-off has significantly impacted Nvidia's valuation. News agency Reuters reported that the company's shares were trading at approximately 12 times their 12-month forward earnings estimates, a 14-year low. Nvidia is scheduled to report its quarterly results on November 17.