US stocks: Nvidia shares plunge 13% after Jensen Huang quits as CEO; Colette Kress named interim chief

Shares of AI giant Nvidia tumbled 13% on Thursday after CEO Jensen Huang announced his resignation from the company, stepping down as president, chief executive officer and a member of its board with immediate effect.

The company’s Chief Financial Officer, Colette Kress, will serve as interim CEO until a permanent successor is appointed, Nvidia said in a statement on Thursday. The company’s board has initiated a search for a new chief executive and will consider both internal and external candidates.

Harvey C. Jones, former CEO and executive chairman of Synopsys, has been appointed as the first-ever chair of Nvidia’s board.


The leadership change comes amid reports surrounding Huang’s personal life. On Sunday, Huang admitted to having an affair. According to a Financial Times report, he was romantically involved with Alice Huang, an executive at cloud company Megaspeed. The report also said that US intelligence officials believe she is a spy for China.

Meanwhile, Nvidia said Kress would continue serving as executive vice president and CFO alongside her interim CEO responsibilities until a permanent successor is named. The Board is initiating a search for a permanent Chief Executive Officer and will consider internal and external candidates.

Kress has served as Executive Vice President and Chief Financial Officer of NVIDIA since joining the company in September 2013. During her tenure, she led the company’s finance organisation and played a key role in NVIDIA’s growth and evolution. Before joining NVIDIA, Kress spent nearly 25 years in finance roles at leading technology companies, including Cisco and Microsoft.

The Board of Directors appointed Harvey C. Jones as its first-ever Chair of the Board. Mr Jones has been an entrepreneur, technology executive, and active venture investor for over 30 years, including serving as Chief Executive Officer and Executive Chairman of Synopsys.

“Colette has helped lead NVIDIA through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” said Harvey Jones, Chair of the NVIDIA Board of Directors. “She is supported by an experienced leadership team that has been instrumental in executing NVIDIA’s strategy and advancing its technology roadmap. The Board has full confidence in Colette and the leadership team, and we expect the company’s operations, customer commitments and product roadmap to continue without interruption.”

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“NVIDIA’s strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years,” said Colette Kress, Interim CEO and CFO, NVIDIA. “We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers and shareholders.”

Jensen’s contributions to NVIDIA are profound. NVIDIA is one of the most consequential technology companies in the world. The Board and the company thank Jensen for his immeasurable contributions to the company and the industry.

NVIDIA will report its third-quarter fiscal 2027 financial results on Tuesday, November 17, at approximately 1:20 p.m. PT, as previously scheduled, followed by its earnings call at 2 p.m. PT.

What it means for Nvidia investors

According to Vested Finance, Nvidia's shares could remain volatile in the near term as investors reassess the company's valuation and the potential impact of the leadership transition on its growth strategy.

"The more important question is whether the transition affects product development, customer relationships and Nvidia's broader investments across the AI ecosystem. Given Huang's central role in these areas, the market may attach a higher risk premium to the stock until there is greater clarity," it said.

"Ultimately, Nvidia's long-term performance will depend on its ability to sustain earnings growth, maintain its technological advantage and execute its AI infrastructure strategy. The upcoming earnings announcement will be particularly important in helping investors separate the immediate leadership-related uncertainty from the underlying strength of the business," Vested Finance added.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here