Nvidia shares crash 13% in opening trade; market value dips below $4 trillion
The company said on Thursday that Chief Financial Officer Colette Kress would serve as interim CEO while it searches for a permanent replacement. Nvidia also appointed former Synopysys CEO and board member Harvey Jones as the company's first chairman of the board. Nvidia shares plunged more than 12.89% in premarket trading, adding to pressure on the wider stock market.
Shares of Nvidia, an AI industry giant, plummeted 13.09% in opening trade on Thursday, as CEO Jensen Huang resigned. The stock's market value dipped below $4 trillion for the first time since July 2025. CFO Colette Kress will serve as interim CEO while the company searches for a permanent replacement. Harvey Jones, former Synopsys CEO and board member, was appointed as the company's first chairman of the board.
Huang, who owns around 3.61% of Nvidia, will also step down from the board. Huang's departure has raised concerns about the future of Nvidia and the AI ecosystem he helped finance. The company's stock fell by over 12.89% in premarket trading, adding to pressure on the broader stock market. Huang's resignation comes amid scrutiny over allegations of his affair with a Chinese businesswoman suspected of spying for Beijing.
This development could have significant implications for US policy on chip exports, given Huang's efforts to maintain access to the Chinese market. Nvidia has funneled its cash reserves back into the AI industry, investing in cloud service providers, suppliers, and AI research labs. However, investor confidence in AI-related stocks has weakened due to concerns about mounting cash burn and increasing debt among technology companies.
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