Nvidia CEO Jensen Huang resigned yesterday following reports of an extramarital affair with a woman suspected of spying for China, prompting a drop in the company’s share price.
Nvidia shares closed 4% lower yesterday, bringing the company’s loss in market value to nearly $1 trillion in November alone. Earlier on Thursday, the stock had fallen as much as 14% before recovering most of its losses as investor concerns about the company’s future without Huang eased.
Nvidia’s board of directors appointed the company’s chief financial officer, Colette Kress, as interim CEO.
Meanwhile, Huang has been called to testify next month before a US Senate committee about his relationship with the alleged spy.
Nvidia has become a central player in the artificial intelligence (AI) economy, with its chips, known as graphics processing units (GPUs), used to train and run AI models across the industry.
The company has also become something of a “central bank” for many AI businesses, as its financial operations are closely intertwined with those of numerous other companies.
Source: The New York Times
