Nvidia Stock Plunges Over 7% as CEO Jensen Huang Resigns
The executive's exit follows scrutiny over two extramarital affairs, including one with a woman suspected of spying for China The post Nvidia Stock Plunges Over 7% as CEO Jensen Huang Resigns appeared first on TheWrap .
Nvidia's shares experienced a significant drop of more than 7% on Thursday, following the announcement that CEO Jensen Huang is stepping down from his roles as president, CEO, and board member. The tech giant faced scrutiny over two extramarital affairs involving a woman suspected of spying for China and a senior executive. Colette Kress, who has been the CFO since 2013, will serve as interim CEO during the search for Huang's replacement.
The board expressed confidence in Kress and the leadership team, stating that operations, customer commitments, and the product roadmap would continue without interruption. Nvidia's market capitalization stands at $3.99 trillion, but its stock is down 12% year-to-date and 25% over the past six months. Industry analyst Keith Fitz-Gerald warns that the company faces challenges in vision and trust, as Huang was a key strategist, salesman, and evangelist for the company.
However, he believes that new leadership can help rebuild confidence, citing examples of other companies that have successfully transitioned with new leaders. Nvidia is set to report its third-quarter results on November 17, with an earnings call scheduled for 2 p.m. PT.
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