Dubai: Nvidia said on Thursday that Jensen Huang had resigned as president, chief executive officer and board member with immediate effect, ending his 33-year leadership of the AI chip giant he co-founded following revelations of two extramarital affairs, including one involving a woman accused of spying for China.The departure follows reports that Huang faced an investigation over an alleged relationship with a woman accused of spying for China. Beijing has denied the espionage claims, while Nvidia has not disclosed a reason for his resignation or established any wrongdoing by Huang.Nvidia shares opened 13% lower at $150.98 on Thursday following the announcement, wiping approximately $550 billion off the chipmaker's market value and reducing its valuation to around $3.65 trillion.The latest sell-off deepens a decline that had already wiped around 25% off Nvidia's share price from its early October peak. The company's market value had fallen from approximately $5.78 trillion to $4.2 trillion by Wednesday's close, including roughly $450 billion lost since reports of Huang's extramarital affairs emerged.Huang's personal fortune also fell an estimated $15.8 billion over two trading sessions earlier this week, according to Forbes, as investors weighed uncertainty over Nvidia's leadership and succession plans.Leadership change raises concernsChief Financial Officer Colette Kress has been appointed interim CEO and will retain her finance responsibilities while Nvidia's board searches for a permanent replacement. The company said it would consider internal and external candidates.Huang co-founded Nvidia in 1993 and built it into one of the world's most valuable technology companies, supplying advanced chips used to develop and run artificial intelligence systems.The company has also appointed Harvey C. Jones as chair of its board, marking the creation of a separate board leadership position.“Colette has helped lead NVIDIA through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” Jones said.He added that the board expected operations, customer commitments and product development plans to continue without interruption.Kress joined Nvidia in September 2013 after holding senior finance positions at Cisco and Microsoft. “We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead,” she said.Focus shifts to AI chip businessThe leadership transition comes as Nvidia faces questions about its ability to maintain its position in the rapidly expanding AI chip market.Investors are watching whether the change affects product launches, customer orders and the company's relationships with major technology companies investing heavily in AI infrastructure.Stephen Innes of SPI Asset Management said investors had placed considerable value on Huang's leadership alongside Nvidia's technology.“The market has spent years assigning Nvidia a premium for exceptional execution,” Innes said. “It may now have to calculate how much of that premium was attached to one individual.”Nvidia has not announced a timetable for appointing a permanent chief executive.Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence.
Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.
