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NVIDIA shares plunged more than 13 per cent in pre-market trading on Thursday following the sudden resignation of the chipmaker's Chief Executive Officer Jensen Huang, weighing on investor sentiment ahead of Wall Street's opening bell.
Nvidia shares fell 13.09 per cent to open at USD 150.99, reflecting sharp selling pressure following the company's announcement of a major leadership transition. However, after US markets opened, NVIDIA shares recovered some of their earlier losses and were trading at USD 160.36, down 7.69 per cent, at the time of reporting. In a statement dated November 12, Nvidia announced that Jensen Huang had resigned as President, Chief Executive Officer and a member of its Board of Directors, effective immediately. The company appointed its Executive Vice President and Chief Financial Officer, Colette Kress, as interim CEO, while initiating a search for a permanent successor. NVIDIAs interim CEO Colette Kress stated she remains committed to building upon the foundation created by Jensen Huang. "NVIDIAs 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," Kress stated. The NVIDIA Board of Directors initiated a search for a permanent Chief Executive Officer and noted it plans to evaluate both internal and external candidates for the position. Alongside the executive transition, the Board appointed Harvey C. Jones as its first-ever Chair of the Board. "We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead," Kress added, noting that the company continues to focus on serving its customers, partners, developers, and shareholders. Jones, who brings over three decades of experience as an entrepreneur, technology executive, and venture investor, including previous tenures as Chief Executive Officer and Executive Chairman of Synopsys, expressed trust in the current management structure. "Colette has helped lead NVIDIA through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position," Jones said. Kress joined NVIDIA in September 2013 and led the finance organisation through a period of expansion, following nearly 25 years in finance positions at technology firms such as Cisco and Microsoft. "She is supported by an experienced leadership team that has been instrumental in executing NVIDIAs strategy and advancing its technology roadmap," Jones noted. The newly appointed Chair confirmed that the Board expects the company's operations, customer commitments, and product roadmap to proceed without interruption under Kress and the leadership team. Jensens 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, the company said in the release. The company plans to release its third-quarter fiscal 2027 financial results on Tuesday, November 17. (ANI)
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