Nvidia appoints CFO Colette Kress as interim CEO after Jensen Huang resigns
Nvidia's chief executive Jensen Huang stepped down amid personal scandal, prompting a share plunge and the appointment of CFO Colette Kress as interim chief executive.
Nvidia announced that chief financial officer Colette Kress will serve as interim chief executive following the resignation of founder and CEO Jensen Huang. The board also named former Synopsys chief Harvey Jones as the company's first chair.
Shares of Nvidia fell more than 12 per cent in early trading, erasing roughly US$500-billion in market value and pulling down broader market indices, while rivals AMD and Broadcom rose 2 per cent and 5 per cent respectively.
In a memo to staff, Kress said the board and executive team recognize the difficulty of the recent period and that a company-wide meeting will be held on Nov. 18.
Analysts noted that the departure could affect execution of Nvidia's technology roadmap, which remains largely visible for the next several years. Michael Feldman of ClearBridge Investments said, "> The risk is not that Nvidia suddenly loses its technology roadmap … the risk is execution. Jensen has been the chief conductor of an extraordinarily complex system."
U.S. President Donald Trump praised Huang's contributions to the United States and suggested former Apple chief Tim Cook as a possible successor on social media. House Speaker Mike Johnson called it "critically important" to select a successor, referencing ongoing congressional discussions about semiconductor export limits to China.