It's all over for Nvidia CEO Jensen Huang. Following revelations about extramarital affairs and ties to a suspected Chinese spy, he is stepping down from his position effective immediately. Meanwhile, the company's stock is plummeting on Wall Street.
On Thursday, Nvidia announced that its founder Jensen Huang, 63, is stepping down as CEO following weeks of high-profile scandals. The announcement comes shortly after reports that the board was preparing to dismiss him. The CFO Colette Kress will temporarily take over management while a permanent replacement is recruited, reports Bloomberg.
The espionage scandal marked the beginning of the end
The scandal began when it was revealed that Huang had had an extramarital affair with Alice Huang, a Chinese businesswoman whom U.S. intelligence agencies accuse of being a Chinese spy. China has denied the allegations.
On Wednesday, The New York Times revealed yet another alleged affair, this time involving the CEO of Nvidia Kimberly Powell. Shortly thereafter, the Wall Street Journal reported that the board was preparing to remove Huang.
The stock is plummeting
The market reacted strongly to the announcement of his resignation. Nvidia shares fell about 10 percent in Thursday’s pre-market trading, according to Dagens industri. Bloomberg, meanwhile, reported a drop of about 11 percent.
Harvey Jones will become the new chairman of the board. Nvidia will now evaluate both internal and external candidates to find a permanent successor to Huang.
