Nvidia chief Jensen Huang resigns amid affair allegations as shares plunge $500bn

Nvidia chief executive Jensen Huang has resigned as president, chief executive and board member of the technology giant amid reports of an alleged affair with a senior company executive and a separate cheating scandal involving an alleged Chinese spy.

The shock departure comes as the company’s shares suffer a dramatic sell-off, wiping approximately $500bn (£376bn) from its market value since Friday.

Nvidia confirmed Huang’s resignation in a statement, describing his contribution to the business as “profound” and thanking the 63-year-old for his “immeasurable contributions”.

Huang co-founded the semiconductor group in 1993 and transformed it into one of the world’s most valuable companies as demand for chips powering artificial intelligence surged.

Its market value climbed by around 470 per cent over the past five years, reaching approximately $4.2tn (£3.16tn), making it the world’s second most valuable company behind Apple.

However, the latest controversy has intensified scrutiny of the company’s leadership. Reports have linked Huang to a second alleged extramarital affair with Nvidia vice-president of healthcare Kimberly Powell, following claims involving an alleged Chinese spy.

The allegations have not been independently established.

Following the announcement of Huang’s departure, Nvidia shares had fallen a further 10 per cent ahead of Thursday’s trading session, which was due to begin at 2.30pm GMT.

The company has appointed its executive vice-president and chief financial officer, Colette Kress, as interim chief executive. She joined Nvidia in September 2013 and has overseen its finance organisation during a period of extraordinary expansion.

“During her tenure, she has led the company’s finance organisation and has played a key role in Nvidia’s growth and evolution,” the company said.

Before joining Nvidia, Kress spent nearly 25 years in finance roles at major technology groups, including Cisco and Microsoft. It remains unclear whether she will take the position permanently.

Kress said she was committed to maintaining the company’s momentum and building on the foundations established by Huang.

“Nvidia’s 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,” she said.

She added that the company would continue advancing its position in accelerated computing and AI, with its focus remaining on customers, partners, developers and shareholders.

The leadership change leaves investors facing fresh uncertAInty over the future direction of a company central to the global AI boom.