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Jensen Huang's Resignation Sends Nvidia Stock Below $4 Trillion

Chief Financial Officer Colette Kress will take over as interim CEO, while former Synopsys chief Harvey C. Jones will become Nvidia's first board chairman

,   and  TIPP Staff
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Photo by Brecht Corbeel / Unsplash

Nvidia shares fell nearly 10% on Thursday, pushing the chipmaker's market value below $4 trillion after co-founder Jensen Huang announced his immediate resignation as CEO and board member.

Chief Financial Officer Colette Kress will take over as interim CEO, while former Synopsys chief Harvey C. Jones will become Nvidia's first board chairman, according to the company's statement.

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Huang's departure follows reports of two extramarital relationships, including one involving an Nvidia executive. The allegations intensified scrutiny of his leadership, with US lawmakers also calling for his resignation.

Wall Street analysts have warned that his exit could trigger further losses. Bernstein halved its Nvidia price target from $400 to $200. Analysts also raised concerns about the company's succession plans, given Huang's central role in its transformation into a leading supplier of artificial intelligence chips.

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Nvidia CEO Jensen Huang Resigns Amid Scandal Over Alleged Affairs
Huang has denied compromising national security or leaking company secrets. Nvidia's board has hired law firm Wachtell Lipton to investigate the allegations.
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