Jensen Huang Resigns as Nvidia CEO Amid Chinese Spy Scandal, White House Eyes Lutnick Ouster

Jensen Huang resigned as Nvidia's chief executive Thursday morning following reports of two extramarital affairs, one involving a woman believed to be a Chinese intelligence operative. Huang has agreed to brief Congress on his relationship with the suspected spy, adding a national-security dimension to what began as a personal-conduct scandal. Nvidia's board appointed CFO Colette Kress as interim CEO and named Harvey Jones as the company's first-ever board chairman.

The fallout extended to the White House, where senior officials began discussing whether Commerce Secretary Howard Lutnick should be removed from his post. Lutnick faces criticism from lawmakers over his alleged delay in blacklisting Chinese companies and his oversight of Nvidia chip exports to China, issues that gained new urgency after Huang's exit. A White House official said President Trump maintains "complete confidence" in Lutnick, and no removal has been announced. Congress separately stepped up scrutiny of both the administration and Nvidia over the chip-export relationship with China.

Speculation over Huang's permanent successor moved quickly, with Apple CEO Tim Cook emerging as one name under public discussion. Prediction market traders also began placing bets on potential successors, while Jim Cramer said Huang's exit "had to happen" and that interim CEO Kress could bring needed stability, though he warned the stock could fall another 10 to 15 percent. At least one Wall Street bank slashed its Nvidia price target from $465 to $186.

Nvidia shares hit a 52-week low during Thursday's session, leaving the stock down roughly 30 percent from recent highs and erasing approximately $1.9 trillion in market value from its peak. Retail investors stepped in to buy the dip, limiting the intraday rout. The broader market closed lower: the Dow fell 182.56 points, or 0.35 percent, to 52,303.93; the S&P 500 shed 25.75 points, or 0.34 percent, to 7,593.63; and the Nasdaq dropped 103.83 points, or 0.41 percent, to 25,362.36. Advanced Micro Devices rose 5.86 percent, the best performer in the S&P 500, as investors weighed whether Nvidia's turmoil could benefit its nearest chip rival. SK Hynix, heavily exposed to Nvidia, slipped 1.8 percent in Seoul.