Nvidia Appoints Interim CEO After Jensen Huang's Resignation
Shares dropped 4% Thursday as the board named CFO Colette Kress to lead the chipmaker following reports of affairs and national security probes.
By Yuki Melnyk ·
Nvidia named Colette Kress as interim chief executive on Thursday following the resignation of founder Jensen Huang.
The stock fell 14 percent in early trading before stabilizing to close down 4 percent. Investors reacted to news of Huang's exit, which followed weeks of reports about his personal life and corporate governance.
Kress has served as the company's chief financial officer since 2013. She previously spent three years at Cisco and 13 years at Microsoft. In a statement, she said the company's strength comes from its people and that she is committed to building on the foundation Huang created over 33 years.
The board also appointed Harvey C. Jones, a venture investor, as its first chairman. The board said it would evaluate both internal and external candidates for a permanent successor to Huang.
Huang, 63, held a personal fortune estimated by Forbes at more than $150 billion. He is the largest individual shareholder in Nvidia. His departure ends a tenure that saw the company rise from a startup to a major force in the S&P 500 index.
The resignation followed a New York Times report detailing Huang's relationship with Alice Huang, a woman US officials believe is a Chinese spy. The discovery triggered an FBI investigation and scrutiny from the White House. President Donald Trump said the FBI is investigating but praised Huang on Thursday for doing a fantastic job.
Pressure increased late Wednesday when Reuters reported that Huang had an intimate relationship with a second Nvidia employee who reported directly to him. The company launched a board investigation on Sunday and stated it had no reason to believe national security or company secrets were compromised.
US lawmakers continue to seek answers. Senate Majority Leader Chuck Schumer said Congress must demand answers about how national security may have been put at risk. House Foreign Affairs Chairman Brian Mast said his committee has been in contact with Huang's team and will issue a subpoena if necessary to compel his appearance.
More Business · Scam Watch · Report a business · Got a Story?
