NEW YORK, United States — Nvidia shares fell sharply on Thursday after the company confirmed that co-founder and chief executive Jensen Huang had resigned with immediate effect, ending his 33-year tenure at the artificial intelligence chipmaker.

The stock fell more than 13% during early trading, extending a sell-off that had already gathered pace after reports that Nvidia’s board was considering Huang’s future. Reuters reported that the shares had dropped more than 10% in premarket trading, while the Associated Press reported a fall of as much as 14% during Thursday’s session.

Nvidia announced on November 12 that its board had accepted Huang’s resignation as president, chief executive officer and board member, effective immediately. The company appointed its longtime chief financial officer, Colette Kress, as interim chief executive while directors begin searching for a permanent replacement.

The board also appointed Harvey C. Jones, a longtime Nvidia director and former Synopsys chief executive, as the company’s first-ever board chairman. Nvidia said it would consider both internal and external candidates for the permanent CEO position.

A sudden leadership change at the centre of the AI boom

Huang co-founded Nvidia in 1993 and transformed it from a graphics-chip maker into the dominant supplier of processors used to train and operate advanced artificial intelligence systems. His leadership coincided with the explosive growth of generative AI and made Nvidia one of the world’s most valuable companies.

His departure is therefore more than a routine executive transition. Investors have long associated Nvidia’s strategy, public identity and commercial relationships with Huang personally. He played a central role in shaping the company’s move into accelerated computing, building relationships with major technology customers and expanding Nvidia’s influence across the AI infrastructure market.

Reuters reported that analysts viewed the immediate concern as execution and continuity rather than an abrupt disappearance of Nvidia’s technology advantage. The company retains its products, engineering teams, customer base and software ecosystem, but investors must now assess whether its next leadership team can maintain the pace and strategic discipline associated with Huang.

Why investors reacted so sharply

The share-price reaction reflects the uncertainty created when a founder who has led a strategically important technology company for more than three decades leaves suddenly. Nvidia sits at the centre of a global supply chain involving chip designers, foundries, memory manufacturers, server makers, cloud providers and companies building AI data centres.

A change at the top can affect expectations about product priorities, capital allocation, customer relationships and the company’s willingness to finance or invest in other parts of the AI ecosystem. Nvidia’s role has extended beyond selling processors: it has invested in AI infrastructure companies and helped shape the commercial network supporting demand for its chips.

The decline also comes at a time when investors are debating whether enormous spending on AI infrastructure will generate sufficient returns. A leadership shock at the sector’s most influential chip supplier can amplify concerns that were already weighing on valuations across the technology market.

The reported intraday decline should be distinguished from the earlier after-hours and premarket moves. Nvidia had already fallen in extended trading after reports that the board was discussing Huang’s future. The resignation announcement then triggered a further repricing as investors responded to confirmation that he was leaving.

Who is Colette Kress?

Kress joined Nvidia in September 2013 and has served as executive vice president and chief financial officer. Before joining the chipmaker, she held senior finance positions at technology companies including Cisco and Microsoft.

She will retain her CFO responsibilities while serving as interim CEO. That arrangement gives Nvidia a leader familiar with its financial position, operations and investor expectations, but the board has made clear that the interim appointment is not yet a permanent succession decision.

Jones, the newly appointed board chairman, praised Kress’s knowledge of Nvidia’s business, customers and operations. The board’s search for a permanent chief executive will be closely watched because the company has not previously had to replace Huang after such a long period of founder-led leadership.

Scandal, governance and national-security questions

Huang’s resignation follows days of intense scrutiny after reports about personal relationships, including one involving Alice Huang, a former executive at Singapore-based data-centre company Megaspeed. U.S. authorities have reportedly suspected that she had links to Chinese intelligence. Those allegations have not been independently established in full, and the Associated Press has said it could not independently verify the reports.

Huang previously acknowledged being unfaithful to his wife and apologised to his family and colleagues. Nvidia’s board announced an independent investigation on November 8 after reports that its founder had been the target of a foreign intelligence effort. At the time, the board said it had no reason to believe that company secrets or U.S. national security had been compromised and expressed confidence in Huang.

The controversy has raised questions about corporate governance, potential conflicts of interest and the security implications of Nvidia’s commercial relationships. It is important, however, to distinguish reported allegations and ongoing investigations from proven wrongdoing. Nvidia’s public statement on the investigation did not say that company secrets had been compromised.

What happens next for Nvidia?

The immediate test for Kress and the leadership team will be to reassure employees, customers, suppliers and investors that operations and product development remain on course. Nvidia has said its next quarterly results will be released as scheduled on November 17, giving investors an early opportunity to hear how management intends to handle the transition.

Markets will be looking for clarity on the permanent CEO search, the board’s governance response and whether major customers remain confident in Nvidia’s long-term roadmap. The company also faces the challenge of preserving its relationships across the global AI industry while scrutiny of export controls and technology transfers to China continues.

Huang’s exit does not automatically erase Nvidia’s technological lead or the demand for its products. But the market reaction shows how heavily investors had priced his leadership into the company’s prospects. The next phase will test whether Nvidia’s institutional strength can carry the business through a transition that few shareholders appeared prepared for.

Photo: Jensen Huang at Stanford University on April 30, 2026. Photo by Anders Eidesvik, Wikimedia Commons, licensed under CC BY-SA 4.0.

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