Nvidia CEO Jensen Huang has just resigned from the company he co-founded amid reports of two alleged affairs, including one with a woman that U.S. intelligence believes is a Chinese spy, according to a bombshell New York Times report.
Thanks to the AI boom, Nvidia has become one of the most valuable companies in the world. And, as a result, Huang had seemingly become the de facto head of the AI industry. Huang’s resignation will not only send reverberations through the tech world, but the broader global economy as well.
As one could assume, Wall Street didn’t take the news well.
As of Thursday morning, Nvidia stock had plunged on the news of the affairs and rumors about a possible resignation from Huang. So far, the stock has struggled to rebound after Nvidia’s board of directors announced the official CEO transition.
Nvidia stock hit as low as $152 per share when the stock market opened. It’s currently trading around $162 per share as of publication time, showing some recovery now that the resignation is official.
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Nvidia’s Wall Street woes began on Nov. 8 when Jensen Huang confirmed the reports that he had been having an affair. Outlets including the New York Times and Financial Times identified the woman involved as Alice Huang (no relation), an executive at a Singapore-based company, Megaspeed. U.S. intelligence strongly believes that Huang has been working with China’s top intelligence agency as a spy, according to the Times.
Since then, Nvidia has lost more than $450 billion in market value. The stock has dropped by more than 27 percent over the past five days of trading.
Nvidia stock is currently trading at its lowest price in over a year. How much lower will the stock go? That’s unclear.
As previously mentioned, the stock is up a bit as of publication. With Nvidia announcing a new interim CEO in Colette Kress, Nvidia stock price could stabilize. Or the current price-per-share rebound could be a temporary bump from traders buying the dip.
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Topics
Artificial Intelligence
Nvidia
