Nvidia share price crash: Shares of Nvidia, one of the most valuable companies in the world, crashed in opening trade on Thursday as its CEO Jensen Huang resigned. At the stock market opening, shares of Nvidia were trading at $150.98, down 13.09%.This marks a major leadership change for the AI industry and raises questions about the future of the chipmaker Huang transformed into a dominant force in artificial intelligence. The stock crash has taken the market value of Nvidia to below $4 trillion for the first time since July 2025.The company said on Thursday that Chief Financial Officer Colette Kress would serve as interim CEO while it searches for a permanent replacement.Nvidia also appointed former Synopysys CEO and board member Harvey Jones as the company’s first chairman of the board.Huang, who co-founded Nvidia and holds a stake of around 3.61%, making him its fourth-largest investor, will also step down from the board.Nvidia shares plunged more than 12.89% in premarket trading, adding to pressure on the wider stock market.
Jensen Huang scandal
Scrutiny of Huang had intensified in recent days following reports alleging that the 63-year-old, who is married, had an affair with a Chinese businesswoman suspected by US authorities of spying for Beijing.A person familiar with the matter told Reuters that Nvidia’s board convened on Wednesday to discuss removing Huang. This followed reports earlier that day alleging that he had also been involved in an extramarital affair with a senior company executive who reported directly to him.Huang’s departure leaves the $4 trillion company facing uncertainty and threatens to unsettle the wider AI ecosystem that he helped finance. Nvidia has channelled its growing cash reserves back into the industry, investing in cloud service providers, suppliers and some of the world’s largest AI research labs.Investor confidence in AI-related stocks has already weakened amid concerns about mounting cash burn and increasing debt among technology companies that have traditionally generated substantial cash. These developments have raised questions about whether the massive investments underpinning the AI boom will ultimately deliver the expected returns.Huang’s exit could also have significant implications for US policy on chip exports, given his efforts to maintain access to the Chinese market and his close relationship with US President Donald Trump.On Sunday, Trump said Huang had “done an amazing job for our country”. He also said the Nvidia chief had told him he was unaware that the Chinese woman with whom he had an affair was a spy.A departure by Huang could “leave a vacuum at the top”, said Robert Pavlik, senior portfolio manager at Dakota Wealth a few hours before the announcement of Huang’s resignation.“They’re going to have to find a successor that will help the market feel comfortable in the leadership and the direction the company will take.”Beyond the uncertainty surrounding Nvidia, investors are increasingly concerned that the broader AI industry could lose momentum. Questions have persisted over whether the technology will generate sufficient profits to justify the enormous sums being invested in its development.Analysts also noted that some investors could be willing to take a gamble by buying Nvidia shares at what appears to be a discounted price, despite uncertainty over the implications of Huang’s troubles for the company.“There is no credible way to put a precise revenue loss on his departure,” Ipek Ozkardeskaya, senior analyst at Swissquote told AP.“Customers buy Nvidia’s computing power, software and networking ecosystem, and those advantages wouldn’t disappear with its CEO,” she said.