AMD Shares Jump 5.27% as Nvidia CEO Jensen Huang Departs
The board started a search for a permanent replacement as shares fell and rival chipmakers rose on expectations of a shift in AI chip demand.
- On Thursday, Nvidia co-founder and CEO Jensen Huang stepped down effective immediately, with chief financial officer Colette Kress appointed as interim CEO while the board searches for a permanent replacement.
- Huang's resignation followed his admission of an extramarital affair with a woman the U.S. government alleges is a spy for China, though China disputes the allegations, alongside reports of relationships with Nvidia subordinates.
- Silicon Valley figures vocally defended Huang, calling the situation "one mistake, it's no big deal," though the board reportedly viewed the second affair as an excuse to demand his exit despite his managing 60 direct reports.
- Shares of Broadcom climbed as much as 7.1% on Tuesday, as investors viewed the resignation as a potential opportunity for the semiconductor specialist, while Nvidia stock plunged following the news.
- Interim CEO Kress brings nearly 25 years of finance experience from roles at Microsoft and Cisco, having served as Nvidia's CFO since 2013, as the company holds more than 80% market share in data centers.
15 Articles
15 Articles
Nvidia shares plunged after CEO Jensen Huang announced his resignation, and although they recovered during the day, they still closed down more than 4.3%. Meanwhile, shares of some competitors rose.
(New York = Yonhap News) Correspondent Lim Soo-jung = Following the shock of the sudden resignation of former Nvidia CEO Jensen Huang, Nvidia... on the New York Stock Exchange on the 12th (local time)
Nvidia’s executive director, Jensen Huang, presented his resignation to the technology company after it transcended deliberations on its possible exit. Uncertainty caused the chip manufacturer’s shares to plummet by more than 10% at the opening of Wall Street, but subsequently moderated losses to about 4%. Its competitors linked to artificial intelligence record profits and the major U.S. stock indices regain stability.
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