Nvidia Accepts Huang’s Resignation and Names Colette Kress Interim CEO Amid Independent Probe
Key Facts
Nvidia announced on November 12 that it had accepted Jensen Huang’s resignation as president and chief executive and from the board, after the disclosure of two extramarital relationships, one of them linked to a woman described as a suspect in spying for China, according to Reuters. Chief Financial Officer Colette Kress took over as interim CEO, while continuing her financial duties until a permanent successor is chosen. The company said it is considering internal and external candidates for the role, in a transition that puts leadership continuity at the top of investors’ concerns. It also named Harvey Jones, former CEO of Synopsys and a longtime Nvidia board member, as the board’s first chairman. The company did not disclose details of the two relationships in its resignation announcement, according to AP.
The resignation announcement followed the start of an independent investigation on November 8, overseen by a committee of independent board members with the assistance of independent outside legal counsel, according to an Nvidia statement. The board said it sees no reason to believe national security or company secrets were compromised, but it will examine all available information. The company is investigating whether Huang was the target of a foreign intelligence effort, according to AP. The matter remains under investigation, while coverage described the woman linked to one of the relationships as a suspect or alleged spy, not as a proven fact. China said it had not tried to entrap Huang, and its foreign ministry described the espionage allegations as unsubstantiated, according to AP.
AP reported that Singaporean authorities questioned Alice Huang and seized her passport last year as part of an investigation linked to Megaspeed, then barred her from returning to the country. The investigation involving Huang and Megaspeed has drawn scrutiny from lawmakers, Nvidia’s board and investors, according to Reuters. The case has also renewed debate in Washington over sales of advanced AI chips to China, an issue that puts the company at the intersection of commercial interests and national-security-related restrictions. In a letter to company employees, Huang acknowledged that he had not been faithful to his wife and said his actions had hurt his wife and children. The resignation statement provided no further details about these personal matters.
Scrutiny has extended to Nvidia’s relationships with its customers, as financing arrangements the company provided to several businesses, including its customers, came under greater review after Huang’s departure, a Reuters report said. The report pointed to questions about the extent to which demand for the company’s products depends on its financing or infrastructure guarantees for some customers. This comes as Nvidia recorded revenue of $96.2 billion in the second quarter of its fiscal 2027, which ended on July 26, up 18% from the previous quarter and 106% from the same period last year. Huang said when announcing the results that demand was accelerating and AI compute was becoming revenue. The company forecast revenue of $108.0 billion for the third quarter, plus or minus 2%.
In the first half-hour of trading on November 12, individual investors bought about $111 million worth of Nvidia shares, the largest recorded opening order for the stock, according to Reuters. Shares rebounded from session lows in a move that showed buying activity despite the leadership turmoil, without resolving the impact of the transition on investor confidence. Huang owns about 3.61% of the company’s shares, making him its fourth-largest shareholder, according to Reuters. Kress said in her statement that Nvidia’s strength comes from its employees, and pledged to build on the foundation Huang established over 33 years. The company is scheduled to report third-quarter fiscal 2027 results on November 17 and hold an investor and analyst conference at 2 p.m. Pacific time.