CUPERTINO – Nvidia Corporation billionaire co-founder and longtime CEO Jensen Huang has stepped down amid allegations involving suspected Chinese spy and female company executive. The developments jolted Wall Street, with NVIDIA shares plunging more than 13% and reportedly wiping over $500 billion off the artificial intelligence giant’s market value.
Huang’s exit raised serious questions about the future leadership of the company that has emerged as a driving force behind the global artificial intelligence revolution.
The tech pioneer stepped down from all his leadership positions, including Chief Executive Officer, President and member of NVIDIA’s Board of Directors. His exit would mark the end of an extraordinary era at the technology giant he co-founded in early 90s.
Colette Kress named Interim NVIDIA CEO
Amid reported leadership shake-up, NVIDIA’s Chief Financial Officer Colette Kress has been named as the company’s interim Chief Executive Officer.
Kress, who also serves as Executive Vice President, has played a significant role in managing NVIDIA’s finances during its remarkable expansion in the artificial intelligence industry. Board member Harvey Jones praised her experience and deep understanding of the company’s operations, customers and financial position, expressing confidence in her ability to guide NVIDIA through a challenging period.
The reported resignation triggered massive reaction in US markets, with NVIDIA shares falling more than 13% at the opening of Thursday’s trading session. The sharp decline reportedly erased more than $500 billion from the company’s market capitalization, highlighting the enormous influence Huang’s leadership has had on investor confidence.
Selling pressure already emerged in pre-market trading following Wednesday evening’s reports about allegations involving Huang and a female company executive. The market turbulence affected major US stock indexes, with the technology-heavy Nasdaq Composite opening lower while the S&P 500 recorded losses.
The claims also raised concerns about potential security risks involving one of America’s most strategically important technology companies. NVIDIA occupies a central position in the global race for artificial intelligence dominance, producing advanced processors used by major technology companies, research institutions and governments.
Investors will be closely watching the company’s performance, particularly its AI chip sales, revenue growth and outlook for the rapidly expanding artificial intelligence market.
