Nvidia CEO Jensen Huang has resigned after 33 years leading the chipmaker, triggering a sharp sell-off in its shares and raising concerns across the artificial intelligence industry. According to Reuters, Nvidia shares plunged more than 10% in premarket trading on Thursday, November 12, as investors assessed the company’s future without its co-founder.
Chief Financial Officer Colette Kress will serve as interim CEO while Nvidia searches for a permanent replacement. Board member Harvey Jones has also been appointed chairman.
Why Jensen Huang Resigned From Nvidia
Huang’s departure follows reports of two extramarital affairs, including one involving a businesswoman suspected by US authorities of having ties to Chinese intelligence.
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Nvidia’s board previously launched an independent investigation into potential national security concerns, although it stated that it had no reason to believe company secrets had been compromised.
The leadership crisis comes after Nvidia shares had already fallen sharply, wiping hundreds of billions of dollars from the company’s market capitalization.
How Could Nvidia’s Stock Price Move?
Nvidia’s immediate market reaction has been negative, with investors concerned about leadership uncertainty, business execution and the company’s long-term AI strategy.
However, several factors will determine how its shares perform over the coming weeks:
- Further selling pressure: Uncertainty over Nvidia’s permanent CEO and ongoing investigations could increase volatility.
- AI chip demand: Strong demand for Blackwell GPUs and the upcoming Rubin architecture could support Nvidia’s financial performance.
- Competitor gains: AMD and Broadcom could attract investors looking to reduce their exposure to Nvidia.
- Broader market impact: Nvidia’s substantial weighting in the Nasdaq-100 and S&P 500 means further declines could pressure major US indexes.
The company’s CUDA software ecosystem, data center partnerships and established chip roadmap remain important competitive advantages, even as investors reconsider the leadership risks.
What Happens Next for Nvidia Investors?
Nvidia’s November 17 earnings report will provide an important test of investor confidence, particularly regarding AI infrastructure spending, revenue guidance and management’s ability to execute its existing strategy.
Investors will also watch whether Kress maintains Nvidia’s financial commitments to AI companies and cloud infrastructure providers.
Although Huang’s resignation introduces significant uncertainty, Nvidia’s future stock performance will ultimately depend on earnings growth, customer demand and the company’s ability to maintain its technological leadership.
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