Jensen Huang resigns as Nvidia’s chief executive, president, and board member. The resignation took effect immediately on Thursday. Consequently, it ended his 33-year run at the AI chip company he co-founded.
Nvidia shares fell 11.3% to $154.10 in premarket trading. Moreover, the exit came just four days after the board said it had confidence in Huang.
Nvidia is one of the largest companies in the S&P 500. Therefore, the slide reaches American index funds and retirement accounts, not only direct shareholders. Earlier Thursday, S&P 500 futures were down 0.4%. Nasdaq-100 futures were down 0.8%.
Who is running Nvidia now?
Chief Financial Officer Colette Kress will serve as interim CEO. She will keep her CFO post until a permanent successor is named. Nvidia confirmed this in a press release.
Kress has run the company’s finances since September 2013. Before that, she spent nearly 25 years at Cisco, Microsoft, and other tech firms.
Harvey C. Jones, a former Synopsys CEO, becomes the board’s first-ever chair. The board will weigh internal and external candidates for the top job.
Nvidia gave no reason for Huang’s departure. Nevertheless, the board thanked him for his “immeasurable contributions” to the company and the industry.
Why did Huang step down?
The resignation follows two weeks of scandal. On October 29, The New York Times reported Huang’s close relationship with Alice Huang. She is a Megaspeed executive alleged to be a Chinese government agent. Beijing denied the claim.
Huang later admitted in an internal message that he had been unfaithful to his wife. Then on Wednesday, the Times reported a second alleged affair with an Nvidia executive. Additionally, The Wall Street Journal said the board was preparing to remove him.
What comes next for Nvidia shareholders?
Kress’s first test comes on Tuesday, November 17. That is when Nvidia reports third-quarter fiscal 2027 results as scheduled.
Jones said the board expects no disruption. “The Board has full confidence in Colette and the leadership team,” he said. He added that they expect operations and the product roadmap to continue without interruption.
House Republicans on the China Select Committee have also requested a closed-door briefing from Huang on November 18.
Investors now face a question Nvidia has never had to answer: what does the stock do without its founder?
Key takeaway
Jensen Huang resigns after 33 years. Colette Kress takes over as interim CEO. Therefore, investors will watch the November 17 earnings report closely. The stock’s future without its founder remains uncertain.