Nvidia loses its 'Godfather of AI' and now faces first big test without him

Résumé détaillé

Jensen Huang's resignation sent Nvidia stock plunging 14% before losses narrowed, as analysts weigh the AI giant's path forward without its co-founder.

Fox News contributor Michael Pillsbury discusses the resignation of NVIDIA CEO Jensen Huang and the long-term controversy with the U.S.'s policy with China.

The resignation of Jensen Huang as CEO of Nvidia on Thursday roiled the company's stock, as investors and analysts assessed the path forward for the AI giant.

Huang, who co-founded Nvidia in 1993, resigned following reports of two extramarital affairs, including a relationship with a Chinese businesswoman whom U.S. authorities suspect of spying for Beijing which prompted a board investigation. Nvidia announced that veteran chief financial officer Colette Kress will serve as interim CEO.

Nvidia shares slumped roughly 14% from Wednesday's closing price, hitting an intraday low of $148.80 per share, before paring those losses. As of early afternoon, Nvidia stock was down just 4.3%.

Bret Kenwell, eToro U.S. investment analyst, said Huang's leadership made Nvidia the "crown jewel of the AI trade" and he was "more than a CEO – he was part of the investment thesis," which will prompt greater investor scrutiny of the company's earnings report next week.

NVIDIA CEO JENSEN HUANG RESIGNS AMID INVESTIGATION INTO RELATIONSHIP WITH ALLEGED CHINESE SPY

Jensen Huang resigned from his role as Nvidia CEO on Thursday amid a controversy related to extramarital affairs. (Akio Kon/Bloomberg via Getty Images)

Kenwell said, "Nvidia's earnings already demand close attention, but they will be under an even brighter spotlight next week as shareholders and AI investors look for stability amid the uncertainty. Investors will be looking to Nvidia for a fresh read on demand and a reason to regain confidence."

While other tech companies may look to capitalize on the situation, he said the "leadership questions do not erase Nvidia's position as a best-in-class technology company during a transformational period for the sector."

Début de l'article, extrait de Fox Business. Pour lire la suite, ouvrez l'article chez le média.