Nvidia shares have fallen sharply following the resignation of chief executive officer Jensen Huang, with the technology giant facing growing investor uncertainty amid allegations of two extramarital affairs.
The company’s board announced on Thursday that Huang had resigned from his positions as CEO, president and board member, bringing an end to his leadership of the company he co-founded in 1993.
Nvidia’s Executive Vice President and Chief Financial Officer, Colette Kress, has agreed to serve as interim CEO.
The announcement comes after reports of two alleged extramarital affairs involving Huang triggered concerns among investors about the company’s leadership and future direction.
According to reports, Huang had previously acknowledged being unfaithful in an apology email to Nvidia employees. He did not identify the woman involved.
The New York Times subsequently reported allegations of a second affair involving an Nvidia executive who reportedly reports directly to Huang. The newspaper said it had spoken to five people familiar with the matter.
The controversy has weighed on Nvidia’s share price, with the company’s stock falling more than 10% in pre-market trading on Thursday ahead of the opening of US markets.
The decline adds to losses recorded earlier in the week as investors reacted to the allegations and uncertainty surrounding Huang’s position at the company.
Nvidia’s board praised Huang’s contributions, describing his impact on the company and the wider technology industry as significant.
“Jensen’s contributions to Nvidia are profound,” the board said, thanking him for his contributions to the company and the industry.
Kress, who joined Nvidia in September 2013, has played a key role in overseeing the company’s financial operations and growth. Before joining Nvidia, she spent nearly 25 years in finance roles at major technology companies, including Cisco and Microsoft.
Following her appointment as interim CEO, Kress said she was committed to building on the foundation established by Huang and continuing Nvidia’s leadership in accelerated computing and artificial intelligence.
Huang co-founded Nvidia in 1993 and led its transformation into one of the world’s most valuable technology companies, driven largely by growing demand for advanced computer chips used in artificial intelligence.
The leadership change comes at a critical time for the company, as investors watch closely to see how Nvidia manages the transition and responds to the ongoing controversy.