A bombshell in the tech world—and the semiconductor industry in particular: After 33 years, Nvidia founder and CEO Jensen Huang has just announced his resignation. The move follows the escalation of a scandal, with reports emerging of an alleged affair between Huang and a senior executive at the company, Kimberly Powell. Chief Financial Officer Colette Kress will take his place. Following the announcement, Nvidia’s stock has plummeted by more than 10% in pre-market trading in New York.
CFO Colette Kress has agreed to serve as interim CEO, while the company has begun a search for a permanent successor. Kress stated that she is committed to building upon the foundations laid by Huang during his 33-year tenure, working alongside the executive leadership team. Chairman of the Board Harvey Jones expressed full confidence in Kress and the management team, emphasizing that the company is expected to continue its ongoing operations, fulfill its commitments to customers, and advance its product roadmap without interruption.
The decision was reached after the Board of Directors convened last night to discuss Huang’s future, in light of a matter that came to light this past weekend—one that also involves concerns regarding national security. In its official statement, Nvidia did not directly address the allegations, opting instead to thank Huang for his contributions to the company over the past 33 years.
Following the announcement, Nvidia shares plummeted more than 12% in pre-market trading in New York, marking a decline of over 35% from the peak reached just over a month ago.