Nvidia CEO Jensen Huang resigns; CFO Colette Kress named interim
The chipmaker says its finance chief will lead it on an interim basis while the board searches for a permanent successor and names its first chair.
Key points
- Jensen Huang resigned as Nvidia president and chief executive, according to a regulatory filing.
- The board accepted the resignation on Wednesday, and the company announced it on Thursday.
- CFO Colette Kress is interim CEO and will keep her finance role.
- Nvidia shares opened down more than 13% in New York on Thursday.
- Harvey C. Jones was named the company's first chair of the board.
Nvidia has named its chief financial officer, Colette Kress, as interim chief executive after co-founder Jensen Huang resigned. According to TechCrunch, the chipmaker disclosed in a filing with regulators that the board had approved his departure on Wednesday. The company made the announcement on Thursday, 12 November.
The departure follows reports that Huang had a romantic relationship with a woman suspected of being a Chinese spy. TechCrunch said the affair has sparked a national security concern in the United States. The BBC reported that Huang had also been linked to other extramarital reports. Nvidia has not yet named a permanent successor.
Read also: Nvidia board reportedly weighs removing CEO Jensen Huang
Shares fall sharply
Nvidia’s stock dropped quickly in early trading. The BBC reported that shares opened down more than 13% in New York, wiping out more than half a trillion dollars of market value. TechCrunch said the stock had fallen by as much as 19% since Friday, a loss of more than $855 billion in market capitalisation.
Several investment firms have also cut their forecasts for the chipmaker. The BBC described this as a rare move, given investors’ long-standing optimism about the company. Stacy Rasgon of Bernstein Research halved the firm’s share price target and said it preferred to watch from the sidelines.
Who could lead Nvidia next
Kress has worked in the technology industry for more than 30 years, including senior roles at Cisco and Microsoft. Analysts said she is a familiar and trusted figure for the market. Some doubt she would be the right choice for a permanent role, because the company may want an engineer in charge.
Names put forward by analysts include Chris Malachowsky, who co-founded Nvidia with Huang and Curtis Priem, and Ian Buck, who oversees the company’s high-performance computing business. Outside the company, experts mentioned Tim Cook, the former Apple chief executive, and Rene Haas, chief executive of Arm Holdings. Each option carries trade-offs, according to the analysts quoted.
Wider AI investments and board changes
Huang founded Nvidia in 1993 and led it as chief executive ever since. TechCrunch reported that the company helped develop the graphics processing unit, which later became central to AI training. Under Huang, Nvidia also invested heavily across the AI sector, including in startups, data centers and AI labs.
Figures cited by TechCrunch show the company held $99 billion in investments at the close of its second quarter, plus $25 billion in pledged commitments. Questions now arise about how these holdings will be managed. Shares of several neocloud operators also fell on Thursday, with CoreWeave down about 9% and Nebius down about 16%.
The board also appointed Harvey C. Jones as its first-ever chair. Jones is a managing partner of Square Wave Ventures and a former chief executive of Synopsys. He has served on Nvidia’s board since 1993.
Related: Nvidia brings in Wachtell to probe CEO Jensen Huang’s conduct
Frequently asked questions
Why did Jensen Huang resign from Nvidia?
Reports said Huang had an extramarital affair, including one with a woman suspected of being a Chinese spy. Sources describe the affair as having sparked a US national security concern. The companyu0026#039;s filing did not give a detailed reason.
Who is leading Nvidia now?
Chief financial officer Colette Kress is interim chief executive until the company finds a permanent successor. She will also continue to serve as CFO.
How did Nvidia shares react?
Shares opened down more than 13% in New York on Thursday. TechCrunch reported the stock had fallen as much as 19% since Friday.
Sources
- BBC News: Who is Nvidia's interim CEO Colette Kress and who could take over after Jensen Huang resigned?
- TechCrunch: Nvidia’s Jensen Huang resigns, chipmaker names CFO Colette Kress as interim CEO
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