Jensen Huang Resigns as Nvidia CEO Amid Affairs and Chinese Spy Scandal, Markets Reel

Jensen Huang resigned as Nvidia's chief executive on November 12, ending a tenure of more than 30 years at the company he co-founded and that became the engine of the global AI boom. The board announced the departure after reports of multiple extramarital affairs, including one with Alice Huang, a Singapore-based tech executive whom US intelligence officials suspect was recruited by Chinese intelligence, an allegation Beijing denies. Reuters subsequently reported that Huang also had relationships with Nvidia healthcare vice president Kimberly Powell and a second Nvidia employee who reported directly to him. Nvidia CFO Colette Kress, a 13-year company veteran, was named interim CEO. Huang agreed to brief Congress on his relationship with Alice Huang.

The scandal extended well beyond the affairs themselves. Alice Huang was at the center of Megaspeed International, a Singapore-based Nvidia cloud partner suspected of diverting restricted AI chips to China, and the Justice Department opened a separate probe into whether companies tied to her helped smuggle Super Micro products into China. Firms linked to Alice Huang reportedly invested in DeepSeek's latest funding round, valued at about $15.8 billion, and promised to supply the Chinese AI lab with Nvidia Blackwell chips that US export rules bar from China. CNBC also reported that companies she held stakes in supplied computing power to Huawei. Singapore said it found insufficient evidence to charge her and did not investigate her for espionage.

The political fallout reached the White House, where senior officials discussed whether Commerce Secretary Howard Lutnick should be removed over criticism that he delayed blacklisting Chinese companies and failed to tighten oversight of Nvidia chip exports. A White House official said President Trump maintains complete confidence in Lutnick, and no removal has been announced. Congressional scrutiny of the administration's handling of Nvidia's China exposure intensified after the resignation.

Nvidia's stock, already down roughly 40% from its October highs at the session's low, hit a 52-week low during trading on November 12. The S&P 500 closed down 0.34%, the Dow fell 0.35%, and the Nasdaq dropped 0.41%, with Nvidia's decline weighing on the broader chip sector. Retail investors stepped in to limit the rout. AMD rose 5.86% and Broadcom initially climbed roughly 4% as investors sought alternatives, though Broadcom later slipped 7% as the broader AI trade unwound. At least one Wall Street bank slashed its Nvidia price target from $465 to $186. Renaissance Technologies disclosed it had cut its Nvidia stake by 99.7% in the third quarter, from 7.09 million shares worth about $1.4 billion to just 23,170 shares. Prediction markets began pricing successor candidates, with Nvidia executive Ian Buck emerging as an early frontrunner.

Against that backdrop, two major tech companies reported strong earnings after the close. Applied Materials posted fourth-quarter net sales of $10.41 billion, up 53% year over year and above the $10.27 billion estimate, with adjusted EPS of $4.16 against a $4.06 estimate. Semiconductor Systems revenue surged 64% to $8.0 billion. The company guided first-quarter revenue to roughly $11.10 billion, plus or minus $500 million, above the $10.89 billion consensus. For all of fiscal 2026, Applied Materials reported revenue of $34.45 billion, up 21%, and adjusted EPS of $12.89, up 37%. Cisco reported fiscal first-quarter revenue of $18.5 billion, up 24% and above the $18.13 billion estimate, with adjusted EPS of $1.40 versus a $1.32 estimate. Networking revenue jumped 43% to $11.1 billion. Cisco raised its full-year revenue forecast to $74.8 billion to $75.8 billion from a prior range of $72.2 billion to $73.4 billion, and lifted adjusted EPS guidance to $5.47 to $5.53 from $5.05 to $5.11. The company said AI infrastructure orders for fiscal 2027 would reach $9 billion, more than double fiscal 2026. Cisco stock jumped roughly 5% on the results. Cerebras Systems reported third-quarter core revenue of $230.9 million, up 70% and above the $214.70 million estimate, and raised its full-year core revenue forecast to $940 million to $960 million from $880 million to $890 million. The company also announced a new deal with Microsoft and said it has 700 megawatts of data center capacity under contract for delivery by end of 2027. Cerebras shares surged as much as 18%.