Nvidia stock volatile after Jensen Huang resignation
Jensen Huang resigned as Nvidia CEO following espionage allegations and personal scandals, triggering a $1 trillion market cap loss. CFO Colette Kress has taken over as interim CEO, raising questions about the company's aggressive financing model.
Jensen Huang, the co-founder and CEO of Nvidia, resigned from all company posts, including his board seat, following a six-day crisis that began in early November 2026. The departure was precipitated by reports that Huang had an affair with Alice Wang, an executive at Singapore-based data center firm Megaspeed, whom U.S. intelligence agencies assessed to be a Chinese Communist Party spy. Wang allegedly facilitated the transfer of restricted chips to China, violating export controls. Huang admitted to the affair in a company-wide email on November 8, and a second affair with a subordinate manager was revealed on November 11. The board, noting Huang held only 3% of shares, advised his departure to protect shareholder value.
Nvidia’s stock experienced extreme volatility, with the company losing nearly $1 trillion in market cap over nine days. While the next two chip generations are already in production, securing near-term earnings, analysts warn of long-term risks. A key concern is the potential halt to Nvidia’s circular financing model, where the company invests in or lends to customers to drive chip demand. CFO Colette Kress, who has served as interim CEO since 2013, previously criticized this "AI central bank" dynamic. She reportedly pushed back on a proposed $250 billion guarantee for OpenAI, reducing it to $100 billion. The U.S. Department of Justice has launched investigations into both the personal espionage allegations and the potential export control violations involving Megaspeed. The company is now searching for a permanent successor, with candidates including internal figure Ian Buck and external names like Tim Cook.
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