Shares of Nvidia fell 13% this week, erasing more than $573 billion in value as its co-founder Jensen Huang resigned as president, chief executive officer and board member.
This marks worst weekly decline since April 2025, while the company posted sixth straight week of losses, longest since 2012.
Nvidia shares crashed amid controversy surrounding Huang, who resigned amid mounting pressure over his admitted extramarital affair and reports that he was the target of a Chinese intelligence.
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Nvidia shares slipped about 10% in US premarket trade after the announcement, extending losses for the week. The stock had already slid nearly 7% since Friday on the first reports about Huang's relationship. On Friday, Nvidia shares closed 2.01% lower at $162.85 apiece. Bernstein downgraded the stock to market-perform and cut its price target to $200 from $400. Oppenheimer downgraded it and removed its price target.
Following Huang's resignation, Chief Financial Officer Colette Kress was named as the interim CEO, who will keep her role as executive vice president and CFO until the board names a permanent successor. The board has begun a search for a permanent CEO and will consider both internal and external candidates, the chipmaker said in a statement on Thursday.
Additionally, the chipmaker also named Harvey C Jones its first-ever Chair of the Board. Jones has spent more than three decades as an entrepreneur, technology executive and venture investor, and was previously CEO and executive chairman of Synopsys.
Speaking on the next CEO, Nvidia spokesperson said that the company is in process of selecting search firm for CEO replacement but hasn't formally engaged with any potential candidates.
How Huang's Resignation Unfolded?
Nvidia's board on November 8 said it will conduct an independent investigation following reports that Huang had been the target of a foreign intelligence effort. The chipmaker said it had “no reason to believe that either national security or Nvidua's secrets were compromised.” Huang also told employees in a message that he had been unfaithful to his wife, adding, “There is no excuse for what I did.” He did not name the woman.
The New York Times and Financial Times reported that US intelligence officials believe the woman, Alice Huang, an executive at Singapore-based Nvidia customer Megaspeed, was working for China's Ministry of State Security. The board's independent members hired former acting US Attorney for the Southern District of New York Joon H. Kim and law firm Wachtell, Lipton, Rosen & Katz to run the probe on November 10/
The New York Times also reported a second extramarital relationship, with Kimberly Powell, Nvidia's vice president of health care. The Wall Street Journal then reported that the board was preparing to remove Huang, and CNBC confirmed the board had met on Wednesday to discuss his future.
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