Jensen Huang Resigns as Nvidia CEO: Second Affair, Successor & Stock Fall
Jensen Huang has resigned as Nvidia CEO with immediate effect after reports of a second affair, as Colette Kress takes over and shares fall.
Image: Wikimedia Commons / Joseph Zadeh
SANTA CLARA, Nov. 12 — Jensen Huang has resigned as president, chief executive and a member of the board of Nvidia, effective immediately, the company said on Thursday, ending a 33-year run at the chipmaker he co-founded in 1993.
The board named chief financial officer Colette Kress as interim chief executive while it searches for a permanent successor, and appointed board member Harvey C. Jones as its first-ever chair. Nvidia said it will report third-quarter results on November 17 as scheduled.
Key Takeaways
- Huang resigned as president, CEO and board member, effective Nov. 12, after 33 years leading Nvidia.
- Colette Kress, the chief financial officer, is interim CEO; Harvey C. Jones is the board's first-ever chair.
- Nvidia shares fell more than 10 percent in premarket trading on Thursday.
- It followed reports of two extramarital relationships, one with an executive who reported to Huang.
Why Did Jensen Huang Resign as Nvidia CEO?
The board's statement gave no reason, and Nvidia has not said whether the reports about Huang's personal life were connected to it. The decision came a day after the board met to discuss his future, and four days after independent directors opened an investigation into whether Huang was a foreign intelligence target.
The first report concerned Alice Huang, a senior executive at Singapore-based Megaspeed. United States intelligence officials said this spring she was an asset of China's Ministry of State Security; China has denied it. Huang acknowledged in a note to employees on Sunday that he had been unfaithful to his wife. Nvidia's board opened an investigation into the claims last week, led by outside lawyers.
Huang had also been asked to appear at a closed-door congressional briefing the day after earnings, and could face a subpoena if he does not appear. Wall Street analysts had already started reassessing the stock as the probe widened.
Who Is Kimberly Powell, the Executive in the Second Affair Report?
Powell, 48, is Nvidia's vice president of healthcare, a role held since 2017 after joining in 2008. She is one of about 60 executives reporting directly to Huang, leading its work on chips for healthcare and medical imaging.
Five people who worked at Nvidia said the two were seen being affectionate at a San Jose hotel during a March developer conference. A bystander recorded it, and Huang's security team asked the person to sign a nondisclosure agreement. The footage has not been made public; both executives are married to other people.
Huang ended a call when asked about Powell; Powell did not respond, and Nvidia declined to comment. The company's code of conduct tells employees to avoid situations where their actions create a conflict, including personal relationships.
Who Will Be the Next Nvidia CEO After Jensen Huang?
The board has started a search for a permanent chief executive, considering internal and external candidates. Two names mentioned among possible successors are Johny Srouji, Apple's hardware chief, and Michael Kagan, Nvidia's chief technology officer. No timetable has been given.
Kress will keep her job as chief financial officer while serving as interim chief executive. The change comes at a sensitive moment: Nvidia leads the world's AI chip market, results are due November 17, and the stock had already fallen sharply in a week dominated by the scandal. AI infrastructure stocks have swung sharply this week.
| What changed | Detail |
|---|---|
| Outgoing chief executive | Jensen Huang, president, CEO and board member, out effective Nov. 12 |
| Interim chief executive | Colette Kress, chief financial officer |
| Board chair | Harvey C. Jones, the board's first-ever chair |
| Share reaction | Down over 10 percent in premarket trading |
| Next earnings | Third-quarter results, November 17 |
| Permanent successor | Search under way; internal and external candidates |
Frequently Asked Questions
Did Jensen Huang resign because of the second affair?
Nvidia has not said whether the reports were connected to the resignation, and the board's statement gave no reason. It came a day after the board met to discuss his future.
Who is Colette Kress, the interim Nvidia CEO?
Kress is Nvidia's executive vice president and chief financial officer. She will serve as interim chief executive while the board searches for a permanent successor.
How much did Nvidia stock fall after Jensen Huang resigned?
Shares fell more than 10 percent in premarket trading on Thursday. The stock had already dropped sharply during the week.
When will Nvidia announce its next CEO?
No date has been given. The board has started a search of internal and external candidates, with Kress leading in the meantime.
