Nvidia Shares Plunge Nearly 14% in Early Trading Following CEO Jensen Huang's Resignation Amid Affair Scandal

Nvidia shares plunged 14% when markets opened on Thursday, 12 November 2026, following the resignation of chief executive Jensen Huang, according to the Associated Press (AP). The decline came amid allegations of two extramarital relationships and concerns involving a woman whom US intelligence officials reportedly suspected of links to Chinese intelligence.

Reuters reported that Nvidia lost approximately £452 billion ($600 billion) in market capitalisation over the week, rather than during Thursday's trading session alone.

Huang's departure leaves the AI chipmaker, which he co-founded in 1993, facing a major leadership transition. Chief financial officer Colette Kress was appointed interim chief executive.

Affair Allegations Trigger Leadership Crisis

Yahoo Finance technology editor Daniel Howley reported that Huang's resignation followed allegations of two extramarital relationships. One reportedly involved Alice Huang, a former executive at Singapore-based Megaspeed International, while the other allegedly involved Nvidia vice-president Kimberly Powell.

The New York Times reported the alleged relationship with Powell on 11 November, citing five people who had worked at Nvidia. Powell joined the company in 2008 and leads its healthcare business.

US intelligence officials reportedly suspected Alice Huang of links to China's Ministry of State Security and of providing information about Jensen Huang and Nvidia's AI technology.

Nvidia's board launched an investigation following reports that its chief executive may have been targeted by a foreign intelligence operation. Huang later acknowledged being unfaithful to his wife in a message to employees, apologising to his family and colleagues.

The Wall Street Journal reported on 11 November that Nvidia's board was preparing to remove Huang. The company subsequently announced his immediate resignation as president, chief executive and board member.

Singapore's Ministry of Home Affairs said on 12 November that Alice Huang was investigated over suspected false declarations involving Megaspeed's server purchases, not espionage. Her passport was impounded in June 2025 to secure her attendance during the investigation.

Although authorities found insufficient evidence to establish an offence, she received a stern warning for providing inaccurate information and was barred from re-entering Singapore. Her passport was returned in February 2026.

The ministry also said neither the government nor its officials had expressed concerns about her alleged intelligence links or relationship with Jensen Huang.

Investors Assess Nvidia's Leadership Uncertainty

Huang's departure raises questions about Nvidia's customer relationships and dealings with government authorities, particularly amid scrutiny of advanced chip exports to China.

The transition comes as semiconductor rivals Advanced Micro Devices (AMD) and Broadcom seek to expand their positions in the AI market. Both companies' shares rose following news of Huang's resignation.

Nvidia must now maintain its technological lead while reassuring customers and investors that its strategy and operations will remain stable.

Colette Kress Appointed Interim Chief Executive

Kress will lead Nvidia temporarily while the board considers internal and external candidates for a permanent replacement. She will retain her roles as executive vice-president and chief financial officer.

She joined Nvidia in September 2013 and has overseen its finances during the company's expansion.

The company also appointed longtime board member Harvey C. Jones as its first-ever chair. Jones has served on the board since 1993 and is an entrepreneur and venture investor.

Nvidia's AI Dominance Faces Uncertainty

Huang co-founded Nvidia in 1993, initially developing graphics processing units (GPUs) for video games. The company later became a leading supplier of chips used to develop and operate AI systems.

Its growth accelerated after ChatGPT launched in November 2022, driving demand for computing power and data centres as technology companies expanded their AI services.

US President Donald Trump previously defended Huang, saying he believed the executive was unaware of Alice Huang's alleged intelligence connections. Trump also said the FBI was investigating the matter.

Nvidia said it had no reason to believe its national security interests or proprietary technology had been compromised. It added that its investigation would examine the available information.

The company now faces the challenge of maintaining its global AI leadership without the founder who led it for more than three decades.