Nvidia's market value has dropped by nearly $500 billion since last week's close, after co-founder Jensen Huang resigned as chief executive following reports of his affairs, including one with a woman suspected of being a Chinese spy.
Shares slide
Nvidia shares fell as much as 14 percent during Thursday's session on Wall Street, then recovered some ground to close 4.3 percent lower at $166.19. The stock is now about 30 percent below its record high of October 6, and more than $1 trillion in market capitalisation has been wiped out over the past month.
Nvidia's valuation had briefly topped $5 trillion, and its shares had risen more than 1,700 percent over four years before the correction.
Nvidia is due to report third-quarter fiscal 2027 results on Tuesday, November 17.
Huang's fortune takes a hit
According to Forbes' Real-Time Billionaires rankings, Huang fell from eighth to tenth place earlier this week. His estimated wealth has since dropped further, pushing him out of the world's top 10 to 13th.
Ripple effects across AI stocks
The selloff hit companies tied to Nvidia's ecosystem.
- CoreWeave: The Nvidia-backed cloud firm fell 8.1 percent.
- Nebius: Shares plunged 18 percent after it cut its 2026 revenue forecast, citing delays in adding third-party capacity.
- Super Micro Computer: Shares dropped 12 percent.
- AMD and Broadcom: Both gained more than 4 percent, as investors weighed whether Nvidia's turmoil could open opportunities for rivals.
Huang resigns, Kress steps in
Nvidia said in a filing and press release that Huang has quit as president, CEO and board member, effective immediately. The board has named Chief Financial Officer Colette Kress interim CEO. She will keep her finance responsibilities while a permanent successor is found.
Harvey C. Jones, a venture investor with about three decades of experience, becomes the company's first-ever board chair.
The company's statement gives no reason for the exit. The board called Huang's contributions 'profound' and thanked him for his service to the company and the industry.
Huang, 63, co-founded Nvidia in 1993 and has led it for 33 years.
The allegations
Huang published an apology to Nvidia employees on November 8, acknowledging that he had been unfaithful to his wife. The Washington Post reported two affairs, one involving a woman suspected of being a Chinese spy. Al Jazeera said the second was with a company executive.
The relationship with the alleged spy has triggered investigations by the FBI, the US Congress and Nvidia itself. The company also faces a shareholder class-action lawsuit. The espionage claim has not been proven. Reports say US President Donald Trump has said he is unsure the woman was a spy.
Company, Trump respond
Nvidia says it is in a "very strong position" to manage the transition, according to Al Jazeera. Kress said she is committed to building on the foundation Huang laid over 33 years. The company says operations, customer commitments and its product roadmap will continue without interruption.
Trump, who had praised Huang's work, said on social media that Apple CEO Tim Cook should succeed him, according to Variety.
