This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Nvidia (NVDA) shares plunged as much as 14% following the abrupt resignation of co-founder and CEO Jensen Huang, wiping out over $300 billion in market capitalization in a single session.
- Huang’s departure follows revelations of a third extramarital affair, this time involving a second internal employee, Kimberly Powell, the company’s Vice President of Healthcare.
- CFO Colette Kress has been named interim CEO, while the board has appointed Harvey C. Jones as its first-ever chairman to stabilize leadership during the transition.
- National security concerns remain at the forefront as the board continues to investigate Huang's prior admitted relationship with Alice Huang, a tech executive suspected of being a Chinese intelligence asset.
Nvidia (NVDA) co-founder Jensen Huang resigned from all positions at the company on Thursday morning, effective immediately. The move comes after a week of escalating scandals that began with an admission of infidelity and culminated in reports of multiple workplace relationships and potential espionage risks.
The resignation was triggered by a "third affair" revelation, specifically an intimate relationship with Kimberly Powell, Nvidia’s Vice President of Healthcare. Sources indicate that the pair were allegedly captured on video being affectionate at a company conference in March 2026, leading to an internal investigation into potential conflicts of interest and violations of the company’s code of conduct.
The board of directors acted swiftly to fill the leadership vacuum, appointing Chief Financial Officer Colette Kress as interim CEO. Kress, a veteran executive who has overseen Nvidia's massive financial growth during the AI boom, is expected to provide a "steady hand" for Wall Street. Additionally, longtime director Harvey C. Jones has been named the company's first chairman of the board.
Market reaction was severe, with Nvidia (NVDA) stock falling 10% to 14% at the opening bell. The decline has pushed the company's market valuation below the $4 trillion mark for the first time since mid-2025. Analysts at Bernstein and Seeking Alpha noted that while product demand remains strong, the loss of a "founder's premium" and the "heavy distraction" of the scandal are weighing heavily on investor sentiment.
The scandal has broader implications beyond corporate governance, as U.S. intelligence officials continue to probe Huang's relationship with Alice Huang (no relation), a former executive at Singapore-based Megaspeed International. Intelligence reports suggest she may have been a Chinese spy, raising fears that sensitive technological secrets or strategic roadmaps could have been compromised during the multi-year relationship.
Despite the turmoil, Nvidia (NVDA) stated it has "no reason to believe" that national security or proprietary secrets were leaked. The board has retained the law firm Wachtell, Lipton, Rosen & Katz to conduct a comprehensive independent review of Huang's conduct and any potential security breaches.
Automated market updates written with AI from market data and news wire reports, published without human review.