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) market capitalization fell below the $4 trillion threshold for the first time since July 2025, following a 13-14% stock price crash at the market open.
- CEO Jensen Huang resigned immediately after revelations of extramarital affairs, including one with a woman suspected of being a Chinese intelligence asset.
- Colette Kress has been named interim CEO, while the board appointed Harvey C. Jones as its first-ever Chair to oversee the leadership transition.
- House China Select Committee Chair Rep. John Moolenaar confirmed the committee is in discussions with Huang for a briefing, warning that subpoena power will be used if a voluntary meeting is not secured.
- Senator Elizabeth Warren has demanded that Commerce Secretary Howard Lutnick explain potential export control loopholes that may have allowed advanced chips to reach China.
The artificial intelligence sector faced a historic upheaval on Thursday as Nvidia (NVDA) co-founder Jensen Huang resigned as President and CEO, effective immediately. The departure follows intense scrutiny over Huang's personal conduct and reports of a relationship with an executive at Megaspeed, a firm allegedly linked to Chinese espionage. The Nvidia board of directors moved quickly to appoint CFO Colette Kress as interim CEO and established Harvey C. Jones as the company's first formal Chairman of the Board.
Market reaction was swift and severe, with Nvidia (NVDA) shares plunging as much as 14.3% to $148.80 in early trading. This sell-off erased hundreds of billions in market value, pushing the company's total valuation below $4 trillion for the first time in over a year. The broader Nasdaq Composite fell 378.46 points (1.49%) shortly after the open, while the S&P 500 dropped 0.78%, reflecting the chipmaker's massive influence on global indices.
In Washington, the political fallout continues to escalate as lawmakers raise national security alarms. Rep. John Moolenaar, Chair of the House China Select Committee, stated that the committee needs to "hear directly from Jensen Huang" regarding his interactions with suspected foreign agents. While Huang has reportedly responded to initial inquiries, Moolenaar emphasized that all three relevant committee chairs are prepared to issue subpoenas to compel his testimony if a date for a formal briefing is not finalized.
Simultaneously, Senator Elizabeth Warren has turned her focus toward the U.S. Department of Commerce, calling on Secretary Howard Lutnick to address "export control loopholes." Warren and other Democratic senators are urging the administration to preserve all records related to Nvidia (NVDA) chip exports to China. The pressure comes amid reports that President Donald Trump continues to back Lutnick despite internal administration friction over how to handle suspected chip diversions to Chinese military-linked firms.
Despite the leadership crisis, Nvidia (NVDA) maintains that its product development roadmap and customer commitments remain unchanged. The company is still scheduled to report its third-quarter fiscal 2027 results on Tuesday, November 17. However, analysts at Bernstein have already downgraded the stock to "market-perform," halving their price target to $200 as the industry grapples with the loss of its most prominent figurehead.
Automated market updates written with AI from market data and news wire reports, published without human review.