Nvidia founder Jensen Huang resigns as CEO; CFO Colette Kress named interim chief as shares plunge

SANTA CLARA, Nov 12 — Nvidia said Thursday that founder Jensen Huang has resigned as president, chief executive officer and a director with immediate effect, ending 33 years at the helm of the chipmaker. Chief financial officer Colette Kress will serve as interim CEO, and the company's shares plunged in early trading.

Board accepted the resignation on Nov. 11

In a Form 8-K filed with the U.S. Securities and Exchange Commission, Nvidia said its board accepted Huang's resignation on Wednesday, Nov. 11, with immediate effect. Huang co-founded Nvidia in 1993 and had run it ever since, the only chief executive in the company's history. The board also named Harvey C. Jones, 73, a director since 1993 and a former CEO of Synopsys, as the company's first-ever chair of the board.

Kress to lead on an interim basis as search begins

Kress, 59, has been Nvidia's chief financial officer since September 2013. She will keep that role while serving as interim CEO until the board names a permanent successor. The board said it will consider internal and external candidates and expects the company's operations, customer commitments and product roadmap to continue without interruption. Nvidia will report its fiscal third-quarter results as scheduled on Nov. 17.

Shares plunge, about $500 billion in value wiped out

Nvidia shares fell more than 12% in early trading on Thursday, wiping out roughly $500 billion in market value and dragging down the broader market, according to Reuters. Nvidia is the world's dominant supplier of AI chips, and its hardware powers the current artificial-intelligence boom, so Huang's sudden departure has shaken the technology industry and financial markets.

No reason given; controversy preceded the exit

Neither the company's announcement nor the 8-K filing gave a reason for Huang's departure, and no severance package or advisory role was disclosed. The New York Times and other outlets had previously reported that Huang acknowledged infidelity in a memo to staff; on Nov. 8 the board said a committee of independent directors, assisted by outside counsel, would investigate reporting that Huang had been the target of a foreign intelligence effort. The company has not linked the resignation to that investigation, which continues.

(Sources: Nvidia; U.S. Securities and Exchange Commission Form 8-K; Reuters; TechCrunch.)