Nvidia shares plunge 13 per cent after CEO Jensen Huang resigns
Colette Kress takes over as interim chief while the board searches for a permanent successor following the co-founder's departure.
Nvidia shares fell by more than 13 per cent in pre-market trading on Thursday after co-founder and chief executive Jensen Huang resigned from his position. According to reports from India Today and The Tribune, Huang has stepped down as President, CEO, and a member of the board, effective immediately.
The company has appointed Chief Financial Officer Colette Kress as interim CEO while the board conducts a search for a permanent replacement. The board also named Harvey Jones, the former CEO of Synopsys, as its first-ever board chairman. Jones stated that the company expects operations and product roadmaps to continue without interruption.
Huang's departure follows reports of alleged extramarital relationships, including one involving a woman whom US authorities suspect of spying for China. While Nvidia did not officially state a reason for the resignation, Reuters reported that the board had launched an investigation into the matter.
The leadership transition triggered a significant sell-off, with the company losing nearly $800 billion in market value since the weekend. The stock saw a sharp decline before recovering some losses during early US market trading. The sell-off also impacted other AI-linked stocks, including CoreWeave and Nebius.
Kress, who joined Nvidia in 2013, said she is committed to building on the foundation created by Huang over his 33-year tenure. Nvidia is scheduled to release its third-quarter fiscal 2027 financial results on November 17.