Jensen Huang’s Resignation Temporarily Sends NVIDIA Shares Down 14% Ahead of Leadership Transition
Key Facts
NVIDIA announced on November 12 that Jensen Huang had resigned as CEO, chairman and a member of its board, effective immediately, in a leadership shift as the company faces scrutiny over whether he was targeted by a foreign intelligence agency. The company named CFO Colette Kress interim CEO; she will continue her finance duties until a permanent successor is appointed. The resignation announcement gave no reason, so it does not establish that the investigations or circulating allegations prompted the decision. In a filing with the U.S. Securities and Exchange Commission, the company said the board accepted the resignation on November 11, before announcing it the following day. The move opens a transition period for a company that has become a central player in the AI boom, as investors await its upcoming financial results.
The board appointed lawyer John Kim and Wachtell, Lipton, Rosen & Katz on November 10 to conduct an independent investigation, according to a statement from the board’s independent members. NVIDIA said it had opened an internal investigation into whether Huang was targeted in a foreign intelligence operation. The company said in an earlier statement that it had “no reason to believe” its secrets or national security had been compromised. On November 8, Huang told employees in a letter that he had betrayed his wife, apologized to his family and colleagues, and pledged to cooperate with the board’s investigation. News reports have covered his alleged personal relationships, including an intimate relationship with a second company employee, according to two people familiar with the matter cited by Reuters, which did not name the woman.
U.S. President Donald Trump said the FBI was looking into Huang’s relationship with Alice Huang, but published coverage did not clarify the status of the investigation. China denied trying to lure Huang, and its foreign ministry described the espionage allegations as unsubstantiated and a smear campaign. These positions leave the matter within the bounds of investigations and allegations that have not been publicly resolved, while NVIDIA said it had no indications that its secrets or national security had been compromised. Huang’s resignation announcement did not link his decision to the case or provide a reason for his departure. That point remains central to interpreting the leadership transition, as the allegations cannot be treated as a confirmed explanation for the resignation.
The news quickly affected trading in the stock on November 12: NVIDIA shares temporarily fell 14% before rapidly recovering about half their losses during the session, the Associated Press reported. Reuters said the stock closed down 4.3% that day, then rose 1% in after-hours trading. On November 13, the stock closed at $162.85, compared with $166.19 at the previous session’s close, according to EL7 data. That same day, the Nasdaq fell 0.9%, and the Associated Press said NVIDIA shares fell again. An eMarketer analyst said the company faces a test of its ability to maintain its AI dominance without Huang, who was associated with building its position in the sector.
NVIDIA said Huang built the company’s foundation over 33 years, linking the current leadership transition to a long period under his leadership. In March, Huang forecast that the company would face $1 trillion in backlogged demand for its chips by the end of 2026, double his estimate a year earlier, the Associated Press reported. These projections heighten the importance of the new management’s ability to maintain investor confidence in its AI-related chip business. The board has begun searching for a permanent CEO and said it would consider candidates from inside and outside NVIDIA. The board also appointed Harvey C. Jones as the company’s first chairman.
NVIDIA is scheduled to report results for its fiscal 2027 third quarter on November 17 at about 1:20 p.m. Pacific time, followed by an earnings call at 2 p.m., according to the company’s schedule, which it said would proceed as planned. The announcement will be the first major financial milestone after the leadership transition, with Kress remaining in her finance role alongside her interim position as CEO. The results date gives investors an opportunity to assess the company’s performance in the coming period while the search for a permanent successor continues. The company’s transition statement did not give a date for selecting a new CEO. The appointment of a permanent successor and the results scheduled for November 17 remain the next two defined events in the leadership transition.