Nvidia announced Thursday that Jensen Huang has stepped down as President, Chief Executive Officer, and a member of the Board of Directors, with immediate effect. The resignation follows a tumultuous week for Huang, who co-founded the chipmaking giant in 1993 and led it for 33 years. The company's board has appointed Colette Kress, Nvidia's Executive Vice President and Chief Financial Officer, to serve as interim CEO. Kress will also retain her CFO responsibilities during this period. Harvey Jones, a managing partner with Square Wave Ventures and a board member since 1993, has been named the company's first board chair.
Huang's departure comes amidst an investigation into his personal conduct, which began after reports surfaced of an extramarital affair with Alice Huang (no relation), a Chinese businesswoman whom U.S. intelligence officials suspect of spying for China. President Trump indicated this week that the FBI is investigating the romantic and business ties between Jensen Huang and Alice Huang. Jensen Huang had acknowledged on Sunday that he was unfaithful to his wife, though he did not specifically name Alice Huang. Nvidia's board stated at that time that it had initiated an independent investigation into reports that its CEO was a target of a "foreign intelligence effort." The board also stated on Sunday that it had "no reason to believe that either national security or NVIDIA secrets were compromised."
Further complicating the situation, the New York Times reported on Wednesday that Huang had a separate extramarital affair with Kimberly Powell, Nvidia's Vice President of Healthcare, who reports directly to him. Five Nvidia employees reportedly told the newspaper that Huang and Powell were seen being affectionate at a hotel during a company conference in March. The New York Times also reported that a bystander allegedly recorded the interaction, and Huang's security personnel then offered the individual a nondisclosure agreement. CBS News has not verified this report, and the New York Times has not seen the video. Following Huang's resignation announcement on Thursday, Reuters reported a third alleged affair involving Huang and another unnamed female employee. Nvidia declined to comment on these additional allegations.
The allegations led to a significant drop in Nvidia's stock price. Shares initially plunged by 13% when Wall Street opened on Thursday after Huang's resignation was announced, wiping more than $320 billion off Nvidia's value for the day. The stock later recovered partially but closed over 4% lower.
Colette Kress, 59, has served as Nvidia's CFO since joining the company in September 2013. During her tenure, Nvidia's market capitalization has grown from approximately $9 billion to nearly $4 trillion. Kress will face her first major test as interim CEO when Nvidia reports its fiscal third-quarter results on Tuesday, November 17. The board has initiated a search for a permanent CEO and will consider both internal and external candidates.