Nvidia stock falls after CEO Jensen Huang resigns amid scandals

Nvidia's stock fell sharply at the opening bell following the immediate resignation of CEO Jensen Huang, a key figure in the AI industry, NBC News reported.

Shares of Nvidia dropped 12% initially and were still down more than 6% by 10 a.m. ET, making the company the largest decliner in the Dow Jones Industrial Average and S&P 500 during early trading.

The resignation came amid multiple scandals involving Huang, including reports of a relationship with a subordinate executive and allegations of an affair with a woman identified by a source as a Chinese spy, according to NBC News and The New York Times.

Nvidia named its longtime chief financial officer as interim CEO, but the company currently lacks a formal succession plan, raising concerns about its leadership during a critical period for AI technology.

The news impacted broader markets, with the Nasdaq Composite index falling 0.5% and the S&P 500 slipping 0.3%, while the Dow remained essentially flat.

This leadership change occurs as the AI sector faces significant developments, including the upcoming initial public offering of Anthropic, a major AI company.