Nvidia shares plunged further Thursday after CEO Jensen Huang stepped down, sending shockwaves through the artificial intelligence industry and pressuring stocks tied to the sector.
Huang’s departure comes after reports that Nvidia’s board was considering removing the longtime executive amid scrutiny of his personal conduct and alleged ties to a woman suspected of working for Chinese intelligence.
Chief Financial Officer Colette Kress will serve as interim CEO while Nvidia searches for a permanent replacement, the company said Thursday, according to Reuters. The chipmaker also named former Synopsys CEO and board member Harvey Jones as its first-ever board chairman. Huang will leave Nvidia’s board as well.
Nvidia shares fell more than 10% in premarket trading following the announcement, extending an earlier decline of 7.6% that had sent the stock to $160.50 shortly before 8 a.m. ET.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 162.86 | -10.87 | -6.26% |
The selloff extended across several AI-related companies and weighed on broader U.S. stock futures, highlighting concerns about the impact of Huang’s departure on one of the world’s most influential chipmakers.
The Nasdaq, S&P 500 and Dow opened lower on Thursday.
The selling extended to several companies tied to the AI industry. Intel, Marvell Technology and Micron Technology fell between 2.7% and 3.5% in premarket trading, while AI infrastructure company CoreWeave dropped approximately 7%.
Meanwhile, Nvidia rivals Advanced Micro Devices and Broadcom moved in the opposite direction, gaining 2.3% and 1.4%, respectively.
The leadership shake-up followed a Wall Street Journal report that Nvidia’s board met Wednesday to consider removing Huang. The reported deliberations came amid scrutiny of two extramarital affairs involving the longtime executive, including one with a woman suspected of having ties to Chinese intelligence.
The chipmaker announced Sunday that it had launched an independent investigation into reports that Huang had been targeted by a foreign intelligence operation. A committee of independent directors, assisted by outside counsel, is overseeing the review.
In its statement, Nvidia said it had no reason to believe national security or company secrets had been compromised and expressed confidence in Huang and his leadership team.
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Huang’s exit raises questions about leadership continuity at Nvidia, a company valued at approximately $4 trillion whose processors are central to the rapid expansion of artificial intelligence infrastructure.
The departure also comes as investors scrutinize the enormous spending commitments fueling the AI boom, with concerns mounting over whether technology companies will generate sufficient returns on their investments.
Huang co-founded Nvidia in 1993 and has served as its chief executive throughout the company’s rise to become a dominant supplier of AI processors. He is also the company’s fourth-largest investor, holding a stake of approximately 3.61%, according to Reuters.
The leadership uncertainty also comes at a closely watched moment for Nvidia’s business, with investors preparing to assess demand for its AI chips and data center products in the company’s upcoming quarterly results.
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Nvidia is scheduled to report its fiscal third-quarter results Nov. 17, when investors will be watching for updates on AI chip demand and the company’s data center business.
Reuters contributed to this report.
