The Nvidia scandal has wiped away $1T in value. What that means for your investments

Nvidia shares experienced a significant plunge on Thursday following the resignation of CEO and co-founder Jensen Huang. According to Qatar Tribune Business, the departure follows revelations involving two extramarital affairs, one of which involved a woman accused of spying for China. While Beijing has rejected the spying allegations, the company itself did not provide a reason for Huang's departure. Huang, 63, also vacated his seat on the board after a 33-year tenure.

In the wake of the announcement, Nvidia shares fell more than 10 percent in premarket trading, though CBC Business reports the stock climbed back to finish the day down 4.3 percent. The stock had already declined approximately 25 percent from its all-time high in early October. CBC Business noted that the company's volatility impacts regular investors due to Nvidia's significant weight in major stock indexes.

Colette Kress will serve as interim CEO while the board searches for a permanent successor, according to Qatar Tribune Business. The board has also appointed Harvey Jones, a former chief executive of Synopsys, as the company's first chair. Jones stated that the board has full confidence in the leadership team and expects company operations and product roadmaps to continue without interruption.

Brief written by urgent.news from CBC Business, Qatar Tribune Business — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.