Jensen Huang Steps Down as Nvidia CEO and Shares Plunge

Jensen Huang stepped down this Thursday (12) as Nvidia's CEO and resigned from the board of directors, effective immediately, according to a company statement. CFO Colette Kress, who has been with the company since 2013, takes over as interim CEO and will hold her current role until a successor is chosen.

The board will search for a permanent replacement both inside and outside the company. Harvey C. Jones was appointed as the first board chair in Nvidia's history and states he has full confidence in Kress and the leadership team. The statement does not provide a reason for the departure of the co-founder, who established the company in 1993.

The resignation comes amid an investigation into Huang's relationship with an executive whom United States intelligence services suspect of spying for China. In recent days, the American press also reported a second extramarital affair involving the executive, and the board met on Wednesday to discuss his future.

Nvidia shares fell more than 10% before the market opened. Shortly after trading began in New York, the Nasdaq retreated 0.6% and the S&P 500 fell 0.3%. Nasdaq 100 futures had already dropped more than 1%, with losses also seen in other chip companies.

In the crypto market, Bitcoin fell below $72,000 following the announcement. The currency was already under pressure from expectations of higher interest rates in the United States and the outflow of about $300 million from spot Bitcoin ETFs on Wednesday. Nvidia is set to release its quarterly earnings report next Tuesday (17).