{"id":74582,"date":"2026-11-12T11:08:12","date_gmt":"2026-11-12T15:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-market-value-plummets-below-4-trillion-as-ceo-jensen-huang-resigns-amid-espionage-scandal\/74582\/"},"modified":"2026-11-12T11:08:12","modified_gmt":"2026-11-12T15:08:12","slug":"nvidia-market-value-plummets-below-4-trillion-as-ceo-jensen-huang-resigns-amid-espionage-scandal","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-market-value-plummets-below-4-trillion-as-ceo-jensen-huang-resigns-amid-espionage-scandal\/74582\/","title":{"rendered":"Nvidia Market Value Plummets Below $4 Trillion as CEO Jensen Huang Resigns Amid Espionage Scandal"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) market capitalization fell below the $4 trillion threshold<\/strong> for the first time since July 2025, following a <strong>13-14% stock price crash<\/strong> at the market open.<\/li>\n<li><strong>CEO Jensen Huang resigned immediately<\/strong> after revelations of extramarital affairs, including one with a woman suspected of being a <strong>Chinese intelligence asset<\/strong>.<\/li>\n<li><strong>Colette Kress has been named interim CEO<\/strong>, while the board appointed <strong>Harvey C. Jones<\/strong> as its first-ever Chair to oversee the leadership transition.<\/li>\n<li><strong>House China Select Committee Chair Rep. John Moolenaar<\/strong> confirmed the committee is in discussions with Huang for a briefing, warning that <strong>subpoena power will be used<\/strong> if a voluntary meeting is not secured.<\/li>\n<li><strong>Senator Elizabeth Warren<\/strong> has demanded that Commerce Secretary <strong>Howard Lutnick<\/strong> explain potential export control loopholes that may have allowed advanced chips to reach China.<\/li>\n<\/ul>\n<p>The artificial intelligence sector faced a historic upheaval on Thursday as <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) co-founder <strong>Jensen Huang resigned as President and CEO<\/strong>, effective immediately. The departure follows intense scrutiny over Huang&#39;s personal conduct and reports of a relationship with an executive at <strong>Megaspeed<\/strong>, a firm allegedly linked to Chinese espionage. The <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> board of directors<\/strong> moved quickly to appoint CFO <strong>Colette Kress<\/strong> as interim CEO and established <strong>Harvey C. Jones<\/strong> as the company&#39;s first formal Chairman of the Board.<\/p>\n<p>Market reaction was swift and severe, with <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) shares plunging as much as <strong>14.3% to $148.80<\/strong> in early trading. This sell-off erased hundreds of billions in market value, pushing the company&#39;s total valuation <strong>below $4 trillion<\/strong> for the first time in over a year. The broader <strong>Nasdaq Composite<\/strong> fell <strong>378.46 points (1.49%)<\/strong> shortly after the open, while the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> dropped <strong>0.78%<\/strong>, reflecting the chipmaker&#39;s massive influence on global indices.<\/p>\n<p>In Washington, the political fallout continues to escalate as lawmakers raise national security alarms. <strong>Rep. John Moolenaar<\/strong>, Chair of the <strong>House China Select Committee<\/strong>, stated that the committee needs to &quot;hear directly from Jensen Huang&quot; 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 <strong>issue subpoenas<\/strong> to compel his testimony if a date for a formal briefing is not finalized.<\/p>\n<p>Simultaneously, <strong>Senator Elizabeth Warren<\/strong> has turned her focus toward the <strong>U.S. Department of Commerce<\/strong>, calling on Secretary <strong>Howard Lutnick<\/strong> to address &quot;export control loopholes.&quot; Warren and other Democratic senators are urging the administration to <strong>preserve all records<\/strong> related to <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) chip exports to China. The pressure comes amid reports that <strong>President Donald Trump<\/strong> continues to back Lutnick despite internal administration friction over how to handle suspected chip diversions to Chinese military-linked firms.<\/p>\n<p>Despite the leadership crisis, <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) maintains that its <strong>product development roadmap<\/strong> and customer commitments remain unchanged. The company is still scheduled to report its <strong>third-quarter fiscal 2027 results<\/strong> on Tuesday, November 17. However, analysts at <strong>Bernstein<\/strong> have already downgraded the stock to &quot;market-perform,&quot; halving their price target to <strong>$200<\/strong> as the industry grapples with the loss of its most prominent figurehead.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) market capitalization fell below the $4 trillion threshold for the first time since July 2025, following [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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