NuAxiSemiconductor trade intelligence

Jensen Huang resigns as Nvidia chief executive

What happened

In a Form 8-K filed with the US Securities and Exchange Commission (SEC), Nvidia disclosed that it accepted the resignation of Huang, identified as Jen-Hsun Huang, on November 11, effective immediately. He is being replaced by chief financial officer Colette Kress, who will serve as interim leader while the board conducts a search for a new CEO. According to the source, his position became untenable following an investigation by the company's board after he admitted to an affair, amid allegations of a relationship with a woman US authorities suspected of being a Chinese spy, and reports this week of a second alleged affair with a company employee. The scandal first broke on October 29. Nvidia's shares fell 4.3 percent on November 9 and a further 5.5 percent the following day, wiping around $430 billion off its market value. The article also notes Huang founded Nvidia in 1993 and served as president, CEO and board member since, with the company's market value hitting a peak of over $5.5 trillion earlier this year; commentators said next week's earnings call had become the most important in the company's history, that the interim arrangement means the real decision is still ahead, and that investigations remain open.