Nvidia (NVDA) stock tanked in premarket trading after Jensen Huang resigned as CEO. The company’s CFO, Colette Kress, will serve as the interim head of the business until a permanent successor is named.
Nvidia stock dropped 10% on the news.
The leadership shakeup followed a report from The New York Times on Wednesday that embattled Nvidia (NVDA) CEO Jensen Huang was allegedly involved in a second extramarital affair. The company’s board was reportedly meeting on Wednesday night to determine if it will oust Huang as chief executive, the Wall Street Journal reports.
According to the report, Huang, whose relationship with a woman alleged to be a Chinese spy has embroiled the company in scandal this week, also had a relationship with Nvidia executive Kimberly Powell. The Times report says that Huang and Powell were seen being affectionate at a hotel during a company conference in March.
Huang was already under investigation for an affair with Alice Huang, an alleged Chinese spy. The CEO admitted the affair in a memo to employees. “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang wrote.
The Information reported on Tuesday that Alice Huang is believed to be involved in a network of Chinese companies that facilitated the shipment of $7.5 billion in chip sales to China.
Given the size and importance of Nvidia in the stock market today, the revelation marks one of the biggest CEO-personal conduct scandals in history. It also highlights Nvidia’s key-person risk and uncertain succession plan as questions swirl about whether the board will ask Huang to step down.
The news has drawn immediate and varied reactions from leaders ranging from the US president to other CEOs. President Trump stood by Huang, calling him “an honorable guy,” but other members of the president’s party are expected to put more scrutiny on the company. Trump also stated on Monday that the FBI was looking into Huang’s relationship.
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Nvidia CEO Jensen Huang resigns
Nvidia’s board of directors announced on Thursday that longtime CEO Jensen Huang will resign, effective immediately.
The company’s CFO, Colette Kress, will step in on an interim basis as chief executive.
“NVIDIA’s strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years,” Kress said. “We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers and shareholders.”
The board noted Huang’s “profound” contributions to the business, despite his recent downfall due to two extramarital affairs.
Nvidia will still report earnings on Tuesday, Nov. 17, as scheduled.
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Jensen Huang receives a media group interview before attending the welcome dinner of the third China International Supply Chain Expo (CISCE) on July 15, 2025, in Beijing, China. (Wan Quan/VCG via Getty Images) · VCG via Getty Images
