Nvidia stock plunges 14% to over one-year low as Jensen Huang quits amid affair; market cap falls below $4 trillion

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Nvidia shares fell 14.3% to $148.80 after CEO Jensen Huang resigned, ending his 33-year tenure. CFO Colette Kress was named interim CEO as the board searches for a permanent successor. Harvey C. Jones was appointed the company’s first board chairman.

Nvidia shares came under heavy selling pressure at Thursday's open, falling 14.3% to $148.80 after the world's most valuable chipmaker announced a sudden leadership shake-up, with Jensen Huang stepping down as President and Chief Executive Officer (CEO) with immediate effect.

The leadership transition has raised concerns among investors about the company's future direction without Huang, who has been instrumental in transforming Nvidia from a graphics chipmaker into a global powerhouse in artificial intelligence (AI) and accelerated computing.

Pressure had been mounting on Huang in recent days after reports said the 63-year-old, who is married, had an affair with a Chinese businesswoman whom US authorities suspect of spying for Beijing.

Nvidia's board met on Wednesday to consider his ouster, a person familiar with the matter told Reuters, after reports earlier in the day that Huang also had an extramarital affair with a senior company executive who reported to him.

Kress, who joined Nvidia in September 2013, will continue to serve as CFO alongside her interim CEO responsibilities until a permanent successor is appointed. The board said it would consider both internal and external candidates for the position.

Meanwhile, Harvey C. Jones, a veteran technology executive and former CEO and executive chairman of Synopsys, has been appointed as Nvidia's first-ever chairman of the board.

In a statement, Jones expressed confidence in Kress and the existing leadership team, saying they would continue executing the company's strategy and advancing its technology roadmap. He also sought to reassure investors that the transition would not disrupt Nvidia's operations, customer commitments or product roadmap.

Kress also pledged to build on the foundation established by Huang and maintain the company's focus on accelerated computing and AI opportunities.

The leadership shake-up comes at a crucial time for Nvidia, which is scheduled to report its third-quarter fiscal 2027 financial results…

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