Jensen Huang stepped down as CEO of Nvidia on Thursday (12), effective immediately, after admitting to two extramarital affairs brought to light by internal and media investigations. CFO Colette Kress is taking over on an interim basis. For investors holding Nvidia BDRs (NVDC34) on the B3, the day's decline topped 8%.
The stock plummeted from $173.73 to ~$155, according to pricing data reported by financial media.
Nvidia's Brazilian BDR followed the U.S. sell-off on Thursday.
From $239.24 (the October 6 peak) to ~$155 today—our estimate based on reported prices.
What Happened With Jensen Huang and Nvidia?
Jensen Huang resigned as CEO, president, and board member of Nvidia on Thursday (11/12), effective immediately, after admitting to two extramarital affairs: one with an executive suspected of Chinese espionage by U.S. intelligence agencies, and another with a company vice president who reported directly to him. CFO Colette Kress is stepping in as interim CEO while the board searches for a permanent replacement.
The first relationship involves Alice Huang, an executive at Megaspeed Cloud. According to CNN, U.S. intelligence services concluded in a classified memo in May that she was a Beijing espionage asset—a matter that led to the opening of an internal investigation at Nvidia on November 8. The second involves Kimberly Powell, Nvidia's vice president of healthcare—a direct report to the CEO. Nvidia hired the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent probe, and Huang himself admitted to both relationships in an internal memo to employees. The board met this morning and formalized his resignation.
Why the Second Affair Was the Point of No Return
The scandal involving Alice Huang had already generated significant political pressure—Republican Senator Kevin Cramer publicly demanded Huang's removal, and President Trump commented on the situation, saying he believed Huang was unaware of any ties she had to Chinese espionage. However, corporate crisis management was not resolved by those external interventions. What made his exit inevitable was the second relationship.
A relationship with a direct report is an internal conflict of interest, not merely a personal matter: it compromises the chain of command, creates legal risk for the board, and makes a CEO's continued tenure formally untenable under any governance committee. Unsurprisingly, as the Wall Street Journal had already reported a day earlier, his departure had been decided internally since November 11. Today's resignation was the final outcome, not a surprise.
Who Is Colette Kress and What Does She Inherit?
Colette Kress, 59, has been with Nvidia since September 2013 as CFO. Prior to that, she spent nearly 25 years in finance roles at Cisco and Microsoft. Analyst Dan Ives of Yorkville Ives & Co. noted that she "is more than a CFO—I almost view her as a COO" and that she is "the only person internally with that level of significant respect." Daniel Newman, CEO of the Futurum Group, added that Kress "deeply understands the business and has demonstrated fierce loyalty to the company."
What she inherits is challenging. Huang built Nvidia over 33 years—transforming it from a maker of gaming graphics chips into the dominant supplier of AI hardware, reaching $96 billion in revenue in a single quarter. Kress is doubling as interim CEO and CFO while the board evaluates internal and external candidates for the permanent role. Harvey C. Jones, former CEO of Synopsys, is taking over as the company's first-ever chairman of the board—a position that never previously existed at Nvidia.
The immediate calendar leaves no room for error: third-quarter earnings are scheduled for November 17, with Wall Street projecting $108.8 billion in revenue and earnings per share of $2.47.
What Huang's Exit Means for NVDA Stock
NVDA was already under pressure before Thursday. According to pricing data reported by the financial media, the stock retreated from $228.52 (10/13) to $173.73 (11/11), a 24% drop in 30 days. With Thursday's additional decline—from $173.73 to around $155—the stock is trading well below its 200-day moving average ($204.47). Market capitalization has dropped below $4 trillion.
Bernstein cut its price target in half on Thursday, slashing it from $400 to $200. Senior analyst Stacy Rasgon summarized the issue in a direct diagnosis: "Jensen is Nvidia." Citi and KeyBanc also adopted a more cautious stance. Richard Reyle of Questar Capital Partners went further, calling the stock "uninvestable" due to the lack of a formal succession plan. Jensen Huang retains a 3.6% stake in Nvidia—a position he maintains even after his resignation.
The history of founder-CEO transitions varies. When Benjamin Steinbruch left CSN after 24 years, as we showed in our analysis of CSN's leadership change, the stock reacted positively. In Nvidia's case, however, the departure is entangled with an ongoing scandal and the lack of an obvious heir, making any direct comparison difficult.
The board hires a recognized semiconductor or AI industry veteran, and the November 17 earnings beat expectations. The market prices in stability, and the current pullback is absorbed over the coming weeks.
The board takes too long to name a permanent successor, Q3 disappoints, or the espionage investigation enters a new public phase. The stock trades without leadership direction, and analysts revise projections downward.
Nvidia's Brazilian BDR (NVDC34) followed the U.S. sell-off adjusted for currency: NVDA dropped ~10% and NVDC34 fell more than 8% on Thursday. Investors holding the position today have inherited a new risk—not related to operational fundamentals, but to governance. Nvidia generates $96 billion per quarter without relying on Huang to execute; the issue is that strategic leadership in AI was centralized in him for 33 years, and there is no defined successor. The Q3 earnings release on November 17 will provide the first signal of whether the market is overpricing the scandal or if there is a basis for a deeper fundamental reassessment.
Q3 Earnings — 11/17 — if revenue comes in close to the projected $108.8 billion, the market will have an anchor to evaluate the company without Huang. A significant miss means another round of selling; in-line or better results mean short-term relief.
Permanent CEO Appointment — the profile of the chosen candidate matters more than speed. An internal pick (such as Jay Puri, executive VP) tends to be read as continuity, while an external choice opens a debate over corporate culture and AI strategy. Dan Ives estimates an interim period of about a year.
Espionage Investigation — so far, there are no formal charges against Jensen Huang or Alice Huang for espionage; it remains a suspicion attributed to U.S. intelligence agencies that is still under review. If that changes—through Senate testimony, indictments, or sanctions—the impact on the stock would be in addition to what has already been priced in.
The Takeaway: Jensen Huang left Nvidia on Dec 11, 2026 after admitting to two extramarital affairs—one involving a suspected Chinese spy, and another with a direct report. CFO Colette Kress is taking over as interim CEO. The NVDA stock dropped about 10% in the session, and the NVDC34 BDR fell more than 8% on the B3. The market is now pricing the company without the only leader it has ever known, with no ready succession plan and Q3 earnings scheduled for November 17—the first real gauge of how Nvidia performs with Huang out of the picture.
