Nvidia Stock Plunges as CEO Jensen Huang Resigns Following Personal Conduct Probe

Nvidia chief executive Jensen Huang has resigned following a series of personal scandals and an internal corporate investigation, the semiconductor giant announced on Thursday morning. The executive's sudden exit wiped out approximately $546 billion in market capitalization within the first hour of trading, extending a market value decline of more than $1 trillion since controversies emerged in late October.

The turmoil began following reports detailing Huang's relationship with Alice Huang, a former executive at Singapore-based Megaspeed and an alleged asset of China's Ministry of State Security. Following Huang's public acknowledgment of the affair, Nvidia launched a formal investigation on November 8, which coincided with reports of a second affair involving a company employee. Prior to the revelations, Nvidia's market valuation stood at roughly $5.2 trillion.

Huang's departure creates significant uncertainty across the global economy, as Nvidia hardware powers the majority of major artificial intelligence models. Beyond its primary chip business, the company holds significant stakes in key technology firms, including nearly $30 billion in Intel stock and approximately $21 billion in SpaceX shares, according to an August regulatory filing. While Nvidia faces market headwinds, rivals have gained ground, with AMD stock rising 28 percent and Broadcom surging nearly 16 percent over five days.

What to watch next: Industry analysts will closely follow Nvidia's board as it seeks a replacement capable of maintaining leadership in AI hardware and managing its multibillion-dollar technology investment portfolio.