Nvidia shares fall 12% after Jensen Huang resigns
By the AFREEQUE newsroom, based on Club of Mozambique
Jensen Huang’s resignation as head of Nvidia comes after revelations about two extramarital affairs, one involving an alleged Chinese spy, and sent the stock down as much as 12%. The US House speaker cited growing consensus in Congress to restrict chip exports to China, according to Club of Mozambique.
Nvidia shares fell as much as 12% on Thursday after Jensen Huang, co-founder and chief executive of the US chipmaker, resigned amid a crisis linked to revelations about his personal relationships. Nvidia chief financial officer Colette Kress is serving as interim chief executive while the group searches for a permanent successor, according to Nvidia and Reuters.
The crisis comes as the US House speaker cited growing consensus in Congress to restrict chip exports to China. Jensen Huang has also agreed to testify before Congress before Thanksgiving, according to CNBC.
Jensen Huang’s departure comes after Nvidia shares rose sevenfold until early October, taking the group’s market capitalisation to nearly $6 trillion. The former chief executive had defended Nvidia’s access to the Chinese market, while US policy on chip exports to China is now the subject of debate in Congress.
The development comes after Colette Kress temporarily took over Nvidia’s leadership, announced on 12 November, and after reports on 11 November of Jensen Huang’s possible removal. It also follows Donald Trump’s comments on replacing Nvidia’s chief executive, published on 12 November.
