Nvidia shares plunge after CEO Jensen Huang resigns with immediate effect
The chipmaker appointed CFO Colette Kress as interim CEO following Huang's sudden departure on November 12.
Nvidia shares fell significantly in trading after CEO and director Jensen Huang resigned with immediate effect on November 12, according to BusinessLine. The stock plunged over 13 per cent in pre-market trading, while Economic Times reported a fall of about 10 per cent on Thursday.
The company has appointed CFO Colette Kress as interim CEO and has begun searching for a permanent successor. The resignation follows reports concerning Huang's personal conduct that raised questions regarding corporate governance and the potential exposure of sensitive information, BusinessLine reported.
Hindustan Times stated that the board is considering an interim leader before selecting a permanent successor and is reportedly working with an external firm to find a replacement. The departure follows allegations of an extramarital relationship with a woman linked to a major customer, as well as a relationship with a female vice president in the healthcare division.
The Hindustan Times further noted that concerns were raised regarding whether these relationships compromised the security of technical information. While the company and the customer involved have denied any wrongdoing, the news caused Nvidia shares to drop approximately 8 per cent in extended trading on Wednesday.
The leadership change has impacted the broader market. Economic Times reported that while AMD and Broadcom shares rose, Nvidia-backed CoreWeave fell 14 per cent in premarket trading, and rival Nebius dropped 20 per cent. TSMC, which manufactures Nvidia chips, declined more than 4 per cent.