Nvidia Shares Plunge After CEO Jensen Huang Steps Down Over Personal Scandals

UPDATE - follow-up to Nvidia CEO Jensen Huang resigns in big blow to AI boom: Jensen Huang resigned as chief executive of Nvidia on Thursday, ending his 33-year run at the helm of the artificial intelligence giant. The company board stated that Mr. Huang stepped down as president, chief executive, and board member with immediate effect. Chief financial officer Colette Kress will serve as interim CEO while keeping her finance role, while the board considers internal and external candidates for a permanent replacement.

Investigations and Scandals

Mr. Huang faced growing pressure to quit following revelations regarding his personal life. Media reports revealed he had an affair with Alice Huang, a former executive at Singapore-based cloud company Megaspeed whom U.S. authorities concluded was a Chinese intelligence asset. The controversy grew when reports surfaced that he also had an affair with Kimberly Powell, an Nvidia vice president of healthcare who reported directly to him. Following the news, shares of the $4 trillion company plunged 10% in premarket trading on Thursday. Mr. Huang, who is Nvidia's fourth-largest investor with a stake of about 3.61%, will not remain on the board.

Wider Impact

Mr. Huang's exit brings uncertainty to an AI ecosystem that he helped bankroll by pouring Nvidia's cash pile back into cloud providers, suppliers, and labs. His departure may also affect U.S. chip export policy, given his efforts to preserve access to the Chinese market and his close ties with U.S. President Donald Trump, who stated on Sunday that the outgoing chief had done an amazing job for the country.

Context

Nvidia grew from a company best known for computer graphics chips into the world's most valuable firm by supplying the processors driving the global artificial intelligence boom. Leadership changes at such a crucial tech giant can influence global supply chains and government trade policies regarding advanced semiconductors.