Key takeaways
- Jensen Huang resigns after 33 years leading Nvidia
- Nvidia stock plunges 10% as leadership uncertainty intensifies
- Colette Kress takes over ahead of November earnings
Nvidia stock (NASDAQ: NVDA) plunged approximately 10% in premarket trading on November 12 after founder and CEO Jensen Huang resigned following a widening corporate governance controversy, ending his 33-year leadership of the artificial intelligence chipmaker.
Nvidia appointed longtime Chief Financial Officer Colette Kress as interim CEO while its board searches for a permanent replacement. Huang also stepped down from the company's board, marking a major leadership change at one of the world's most valuable technology companies.
The resignation follows Nvidia's November 8 board investigation into reports that Huang was targeted by a foreign intelligence effort. Directors emphasized at the time that they had no reason to believe Nvidia's confidential information or US national security had been compromised.
Why Is Nvidia Stock Down Today?
NVDA shares dropped approximately 10% before Thursday's opening bell, extending a steep correction that had already erased hundreds of billions of dollars from the company's market capitalization.
Nvidia closed November 11 at $173.73, gaining 2.92% during regular trading before falling sharply in the extended session as reports emerged about Huang's possible removal.
The subsequent resignation confirmed investors' concerns about leadership stability following an escalating investigation into Jensen Huang.
Huang acknowledged an extramarital relationship in a November 8 message to employees. Separate reports raised concerns about his relationship with a business executive suspected by US authorities of intelligence ties to China.
Those allegations remain distinct from any confirmed finding of security violations. Nvidia has not established that Huang disclosed restricted technology or confidential information.
The selloff also follows Wednesday's brief Nvidia stock recovery, when shares rebounded as investors anticipated a possible stabilization.
Who Is Colette Kress, Nvidia's New Interim CEO?
Colette Kress has served as Nvidia's CFO since 2013, overseeing its finances during the company's transformation into the leading supplier of AI computing hardware.
Her appointment provides continuity in financial management, although Nvidia has not announced who will become its permanent CEO.
Before the resignation, speculation about a successor had intensified, with Nvidia engineering executive Ian Buck emerging as a leading candidate in CEO replacement predictions.
The leadership transition creates additional uncertainty around Nvidia's product strategy, customer relationships and its ability to maintain its competitive advantage in AI accelerators.
Huang played a central role in the development of Nvidia's CUDA software ecosystem and its expansion into AI data centers.
What Happens Next for NVDA Stock?
Nvidia's next major catalyst is its fiscal third-quarter earnings report, scheduled for November 17.
Investors will examine data-center revenue, AI accelerator demand, profit margins and management's outlook for 2027 as the company enters its first leadership transition since its founding.
The resignation also follows growing Wall Street concerns about NVDA, including analyst price-target reductions and questions about AI infrastructure valuations.
Meanwhile, strong demand remains evident across the sector. Nvidia-backed CoreWeave recently reported 168% quarterly revenue growth, demonstrating continued investment in computing capacity.
