Nvidia co-founder Jensen Huang resigns as CEO; CFO Colette Kress named interim chief

SANTA CLARA, California, Nov 12 — Nvidia, the world's largest maker of AI chips, said on Thursday that co-founder Jensen Huang has resigned as president, chief executive and a director, effective immediately, ending his 33-year run leading the company. Chief financial officer Colette Kress will serve as interim chief executive while keeping her finance role.

Kress takes charge while the board searches for a permanent successor

Nvidia said its board has begun a formal search for a permanent chief executive and will consider internal and external candidates. The board also named Harvey C. Jones, a former chief executive of Synopsys, as its first-ever board chair; Jones has served as an Nvidia director since 1993. The announcement gave no reason for Huang's departure, and the company's Form 8-K filing with the US Securities and Exchange Commission disclosed no severance, separation or equity arrangements.

Shares fell 14% at the open, then narrowed the loss to 4.3%

The news sent Nvidia shares down about 14% at the opening bell on Thursday, according to the Associated Press, after falling more than 10% in premarket trading to around $156. The stock recovered much of the loss during the session, closing at $166.19, down 4.34% on the day, after closing at $173.73 on Wednesday. At the open it stood about 35% below its record high of $239.24 set on October 6; by Wednesday's close it had already fallen about 27% from that peak. The Associated Press noted the shares had risen 1,722% over the four years through the October record.

The backdrop: a board inquiry and reports of extramarital affairs

Before Huang's resignation, Nvidia's board said on November 8 that a committee of independent directors, assisted by outside counsel, would investigate reporting that Huang had been the target of a foreign intelligence effort. Media reports also described two extramarital relationships involving Huang, including one with a woman whom US authorities reportedly suspect of spying for China, and another with a senior executive who reports to him. Those accounts are media reports and remain unproven; the resignation announcement did not mention the inquiry's findings. Nvidia said its operations, customer commitments and product roadmap would continue without interruption.

Congress pushes for tougher curbs on AI chip sales to China

Reuters reported on Thursday that US lawmakers from both parties are pushing for tougher restrictions on China's access to advanced AI chips. House Speaker Mike Johnson said on Thursday that a growing consensus in Congress favours new restrictions, and several proposals could be attached to the annual defence authorisation bill, including the Chip Security Act, which would require chipmakers to track the location of advanced AI processors and notify the government if they suspect diversion to China; the Match Act, which would pressure allies to restrict sales and maintenance of advanced chipmaking equipment bound for China; and the Remote Access Security Act, aimed at Chinese AI firms using remote access to get around the controls. Nvidia said in August that its revenue from chip sales to Chinese data centres is near zero.

The next test: earnings on November 17

Nvidia confirmed it will report fiscal 2027 third-quarter results as scheduled on Tuesday, November 17, at about 1:20 p.m. Pacific time, followed by an earnings call at 2 p.m. Pacific, led by Kress. Investors will watch closely for the company's latest outlook on AI demand and for how management addresses the leadership change.

Update, November 12–13: Huang agrees to testify before Congress

House Foreign Affairs Committee Chairman Brian Mast said on November 12 that Jensen Huang has agreed to a closed-door briefing with House lawmakers before Thanksgiving, with the exact date still being negotiated; the session is expected to be given under oath and recorded. The chairmen of three House committees — Foreign Affairs, the Select Committee on China, and Intelligence — jointly requested his testimony on November 4, and also asked Nvidia general counsel Tim Teter to appear on December 2. Senate Banking Committee Chairman Tim Scott wrote the same day asking Huang to testify publicly on December 3 and Commerce Secretary Howard Lutnick on December 10, warning that Huang would face a subpoena if he refused. The inquiry centres on Huang's reported relationship with Alice Huang, a businesswoman and former executive at Singapore-based Megaspeed whom US intelligence officials reportedly suspect of working for China; the allegations are unproven. Nvidia reports quarterly results on November 17.

(Sources: Nvidia; Reuters; Associated Press; US Securities and Exchange Commission Form 8-K; The Wall Street Journal; The New York Times. The reports of extramarital affairs and espionage suspicions are media reports and remain unproven; CNN; Bloomberg; TechCrunch.)