Nvidia CEO Jensen Huang resigns over scandal and is replaced by CFO Colette Kress on interim basis – follow live

US president Donald â Trump said on Thursday that former Apple chief executive â Tim Cook should â replace ​Jensen Huang as the CEO of Nvidia.

“NOW THAT Nvidia â CEO JENSEN HUANG, who has done a fantastic job, has resigned, there â is only one man to take ​his place – ‌TIM COOK of Apple,†‌Trump said on social media. “A Legend ‌replaces a Legend!†he added.

Cook stepped down after a 15-year stint as Apple's CEO in September and is now executive chairman at the iPhone-maker.

Meanwhile, Daniela Hathorn, a senior market analyst at Capital.com, has said that investors have been left “concerned†over the change of leadership at Nvidia.

She said that although the interim appointment of Colette Kress will “provide continuity†for the firm, it remains to be seen if Nvidia will be able to keep pace with its rivals.

Hathorn said:

The main concern for investors is the uncertainty following a change of leadership, especially one with a lack of planning like this one. However, the key-man risk is significant, but it shouldn't be confused with the company's entire investment case.

Huang has been instrumental in Nvidia's transformation into the dominant supplier of AI computing infrastructure, and his departure creates uncertainty around strategy, execution and relationships with major customers. But Nvidia's technological advantages, CUDA software ecosystem and substantial order book do not disappear with its CEO.

The appointment of CFO Colette Kress provides some continuity, although investors will want reassurance that the broader leadership team can maintain Nvidia's pace of innovation and defend its market position.

She added that Nvidia's recovery today “looks partly driven by bargain hunting after an aggressive selloff, with some investors seemingly betting that Nvidia's competitive advantages, strong AI demand and established customer relationships will survive a leadership transition.â€

Susannah Streeter, chief investment strategist at the the UK's largest non-advisory investment service Wealth Club, said Nvidia's board “clearly wanted to disassociate with Jensen Huangâ€.

In analysis earlier today, she said:

Even Jensen Huang's superstar status could not eclipse the deep damage the scandal has wreaked on the Nvidia's reputation. Even tech icons of his stature are not immune to being acountable to corporate responsibility.

The emergence of the second affair, this one rumoured to be with an employee, appears to have been the last straw for the board.

With the firm facing so many investigations – launched by the FBI and from Capitol hill, the board clearly wants to disassociate the company from Huang's actions as much as possible.

Streeter added that interim CEO Colette Kress is “seen as a safe pair of hands†and that she has “clearly been brought in to steady the shipâ€.

However, she warned:

But she lacks global status and is unlikely to be able to forge such deep global commercial ties as Nvidia is set to enter into a period of uncertainty over strategic priorities, pricing, supply agreements and future product commitments.

Nvidia has lost a strategic visionary, and it's set to have repercussions right through the AI trade, given how the chip giant is right at the heart of this technological revolution.

Nvidia's shares are recovering from that early tumble – they're down ‘only' 7.7% – which knocks around $320bn off its valuation.

More than $575bn has been wiped off Nvidia's value at the start of trading, as investors react to the departure of Jensen Huang.

Nvidia's shares have tumbled by over 13% at the start of trading, dropping to $149.79 from $173.73 last night.

They ended last week at $186.64 each. And (by my maths), the company's valuation has now slumped by $888bn so far this week.

Having ended Friday night worth $4.5tn, Nvidia's value has now dropped to $3.61bn.

In China, 888 is seen as a lucky number… but not for Huang or Nvidia.

Gil Luria, head of technology research at D.A. Davidson in Portland, Oregon, has looked at the new interim CEO of Nvidia, Colette Kress, who will also continue to serve as chief financial officer.

Luria told Reuters:

Colette Kress is well respected by investors and should be able to guide Nvidia through this challenging period. The task is daunting, as Nvidia has been founder-led since inception and Mr Huang concentrated much of the decision making.

Ben Barringer, head of technology research at Quilter Cheviot, said:

Jensen Huang clearly saw the writing was on the wall and has made the decision to resign as chief executive of Nvidia. This is an important moment in broader financial markets due to the clout that Huang carried, and the fact he had developed Nvidia into the most valuable and influential company in the world.

It remains to be seen if Huang will eventually stick around in some sort of ceremonial or non-executive capacity. It would be difficult to see him not retaining some sort of influence over Nvidia, but we do not yet know the full details of the allegations or the outcome of the investigation, and much of what happens next still depends on that.

For now, CFO Colette Kress has taken the role on an interim position. While there is no natural successor in place, she is the most obvious internal candidate and will now likely use this time to prove she deserves it full time. She certainly knows the company inside out and has helped develop what is a hugely successful strategy.

This doesn't necessarily harm Nvidia in the short-term. Orders remain strong and the company has a robust earnings outlook. What this news threatens to do is harm the wider AI ecosystem in the longer-term. Huang is hugely influential in the debates around AI regulation and has developed Nvidia into the leader in AI investment and financing. With his voice now removed from the table, and the potential for Nvidia to pivot on its strategy over time, the company may not carry the sway it once did.

Turning to the wider outlook for technology firms, he said:

This news ultimately pours petrol onto what is already a volatile picture for tech companies following the midterm elections. Nvidia and its neocloud partners are likely to bear the initial brunt of this news, while competitors like AMD and Broadcom benefit. That said, this news has the potential to be game changing over the long-term with a key figure out of the picture.

Jensen Huang founded Nvidia in 1993 with Chris Malachowsky and Curtis Priemand “with a vision to bring 3D graphics to the gaming and multimedia marketsâ€.

Huang is the company's fourth-largest investor with a â stake of about 3.61% and will not â remain on the board.

Here's some instant reaction to his departure.

Lindsey Stewart, director of institutional investor content at Morningstar, says governance issues and succession planning, long neglected at Nvidia, will become important for other founder-led companies.

The sudden departure of one of the world's most influential CEOs illustrates just how quickly an unconventional governance structure can become a source of risk, and often real losses, for investors. While Nvidia's share price rocketed over the last few years, very few people were asking deep questions about CEO succession planning, board composition and challenge, or oversight of geopolitically sensitive aspects of company strategy. Now, all those issues will be front and centre, perhaps not just for Nvidia, but also for other founder-led companies like Anthropic, Meta Platforms and SpaceX.

Nvidia's shares are falling deeper into the red in pre-market trading, ahead of the open of Wall Street in less than 25 minutes.

They were already heading for a fall, as investors were unsettled by the news that Nvidia's board had met last night to consider Jensen Huang's future.

Now that he has resigned, Nvidia's shares are down 10.4% – an indication of how trading may proceed when the New York stock market session begins.

Nvidia shares have plummeted 10% on the news!

Nvidia paid tribute to Huang, saying:

Jensen's contributions to Nvidia are profound. Nvidia is one of the most consequential technology companies in the world. The board and the company thank Jensen for his immeasurable contributions to the company and the industry.

Kress, the new interim chief executive, has served as executive vice president and chief financial officer of Nvidia since joining the company in September 2013. The group said she has played a key role in Nvidia's growth and evolution. Prior to joining, Kress spent nearly 25 years in finance roles at leading technology companies, including Cisco and Microsoft.

The Nvidia board also appointed Harvey C. Jones as its first-ever chair. Jones has been an entrepreneur, technology executive, and active venture investor for over 30 years, including serving as chief efficer and executive chairman of Synopsys.

Jones said:

Colette has helped lead Nvidia through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position. She is supported by an experienced leadership team that has been instrumental in executing Nvidia's strategy and advancing its technology roadmap. The board has full confidence in Colette and the leadership team, and we expect the company's operations, customer commitments and product roadmap to continue without interruption.

Kress said:

Nvidia's strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years.

We will continue advancing the work that has made Nvidia a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers and shareholders.

The US chipmaker will report its third-quarter results on 17 November.

Nvidia's long-time boss Jensen Huang has stepped down over the scandal, and the company has appointed finance chief Colette Kress as interim chief executive.

The company issued this statement just now, after its board met last night:

The Board of Directors announced today that Jensen Huang has resigned as President, Chief Executive Officer, and a member of the Board, effective immediately.

Colette Kress, current Executive Vice President and Chief Financial Officer of NVIDIA, has agreed to serve as Interim Chief Executive Officer. Kress will continue to serve as Executive Vice President and Chief Financial Officer while serving as Interim Chief Executive Officer until a permanent successor has been named. The Board is initiating a search for a permanent Chief Executive Officer and will consider internal and external candidates.

US trade representative Jamieson â Greer â said â the United States “remains â concerned†​about the tech giant ‌Nvidia, ‌as the world's ‌dominant supplier of AI chips grapples with fallout ‌from reports of two extramarital ​affairs involving its longtime â chief executive Jensen Huang.

Greer told CNBC ​on Thursday:

Obviously we ​remain concerned.

Huang has admitted to an affair with Alice Huang (no relation), a Chinese businesswoman and former Megaspeed executive, who is accused of spying for Beijing. She has reportedly returned to China.

Wall Street is expected to have a bumpy start in just over an hour, with technology shares likely to slide again as the scandal around Nvidia boss Jensen Huang deepens.

Stock futures are extending losses, with the S&P 500 down 0.75%, the tech-heavy Nasdaq 1.5% lower and Dow Jones down 0.2%.

Also, Donald Trump said: “We don't need a deal with Iran.â€

In the second half of a post about corruption in the US, on the social media platform Truth Social, he said:

We don't need a deal with Iran. Those days have long since passed. We've got their money, Hundreds of Billions of Dollars, and we've got their Strait! Thank you for your attention to this matter. President DJT

Oil prices have see-sawed today. Brent crude is now trading 1.5% higher at $93.98 a barrel.

Gold prices have also fallen, by about 2%.