Jensen Huang has resigned as chief executive of Nvidia following reports of extramarital affairs involving an alleged Chinese spy and two company employees. Nvidia announced on Thursday that Huang had stepped down as chief executive, president, and board member with immediate effect.
Colette Kress, the chief financial officer of Nvidia, will take over the role on an interim basis while the board searches for a permanent successor. Shares in the chipmaker plunged by 13 percent when Wall Street opened. The stock closed down 4.3 percent on Thursday, wiping more than $180bn off Nvidia’s value on the day and roughly $490bn for the week, leaving the company valued at $4tn.
The board of directors issued a statement confirming Huang’s departure without mentioning the spying allegations or personal conduct revelations. Instead, the board praised Huang for his profound contributions to the enterprise he co-founded in 1993. The statement said Nvidia is one of the most consequential technology companies in the world, thanking Huang for his immeasurable impact on the industry.
Donald Trump posted on social media that Huang should be replaced by former Apple chief executive and current executive chair Tim Cook. Trump wrote that a legend should replace a legend, after initially defending the Nvidia co-founder when the scandal first emerged.
The board had previously appointed the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into Huang’s relationship with Alice Huang, an Nvidia customer and Chinese citizen with no relation to the chief executive. On Sunday, Jensen Huang admitted he had been unfaithful to his wife, Lori, without directly referring to Alice Huang. US intelligence services suspect Alice Huang of acting as a Chinese asset, though Jensen Huang has denied any knowledge of her allegedly working for the Chinese government.
Reports of additional relationships emerged later in the week. The New York Times reported on Wednesday that Huang had a separate affair with Kimberly Powell, Nvidia vice-president of healthcare. Reuters subsequently reported a third alleged affair with another unnamed female company employee.
Dan Ives, a senior US tech analyst, said the board had done what it needed to do by removing Huang. Neil Wilson, an analyst at Saxo UK, stated that Huang possessed unique technical knowledge, though the company remained well-placed regarding upcoming products and orders.
Nvidia stated that it would consider both internal and external candidates for the chief executive position. Potential contenders include Rene Haas, chief executive of Arm Holdings, and Lisa Su, chief executive of AMD, alongside internal figures such as Kress and Ian Buck.
