Nvidia CEO Jensen Huang resigns after affair allegations; CFO named interim leader

Nvidia CEO Jensen Huang stepped down immediately as chief executive and left the company's board, the chipmaker said Thursday. Chief Financial Officer Colette Kress will serve as interim CEO while the board searches for a permanent successor. Former Synopsys CEO Harvey Jones became the company's first-ever board chairman. The resignation followed an internal investigation into Huang's personal relationships. Huang acknowledged on Sunday that he had been unfaithful to his wife, in a relationship with Alice Huang, an executive at Singapore-based Megaspeed. U.S. authorities believe she is a spy for China. China has rejected allegations of a spying operation targeting Huang and called them a smear campaign. The New York Times also reported another relationship, with Kimberly Powell, Nvidia's vice president of health care, who reports to Huang. Nvidia shares fell more than 10% at one point before paring losses to about 4% in midday trading. The company had been close to a $4 trillion market value. Bernstein cut its price target on the stock from $400 to $200. Analysts said the company's lack of a succession plan was a concern, and some said it was unclear who could lead the company's next phase.

Huang co-founded Nvidia in 1993 and led it from a gaming graphics company into the center of the AI boom. Nvidia controls a large share of the AI chip market, and its chips are used to train and run major AI systems. Lawmakers had called for Huang to step down, and he has agreed to testify before Congress, according to CNBC.