Nvidia (NASDAQ: NVDA) stock plunged on Thursday, November 12, after co-founder and CEO Jensen Huang resigned amid a widening scandal involving an alleged Chinese spy — sending shockwaves through the world's most valuable chipmaker and erasing hundreds of billions of dollars in shareholder value. The NVDA stock price fell roughly 13% at the open, from a $173.73 previous close to $151.00, and as much as 14% intraday, extending a slide that has wiped out about $1.7 trillion in market value since the stock's October 6 record close. With fiscal third-quarter earnings due November 17 and CFO Colette Kress installed as interim CEO, investors are grappling with a leadership crisis that has no clear resolution in sight.

The resignation ends a 33-year run for Huang, who co-founded Nvidia in 1993 and turned it from a niche graphics-chip maker into the most valuable company of the artificial-intelligence era — a position that made him one of the most consequential executives in American business and, until this week, a celebrated figure in Washington. His sudden departure follows a cascade of revelations that began over the weekend, when the board opened an independent investigation into reports that Huang had a relationship with a Singapore-based technology executive whom U.S. intelligence believes was spying for China.

A 33-Year Run Ends in a Leadership Crisis

Huang, 63, resigned as president, chief executive and board member on Thursday after the board concluded it could not weather the reputational and national-security fallout of his personal conduct. Huang admitted in an email to employees over the weekend that he had an affair and apologized, and subsequent reporting revealed a second alleged affair with a subordinate — deepening a scandal that had already rattled investors and policymakers alike.

The central allegation involves Alice Huang, a Singapore-based technology executive described by U.S. intelligence as an asset for Chinese intelligence. Because Nvidia sits at the heart of the U.S.-China race to dominate advanced artificial intelligence and semiconductor design, the affair raised immediate concerns that a foreign intelligence operation could have gained proximity to one of the most strategically important companies on the planet.

The board named CFO Colette Kress as interim CEO while it searches for a permanent successor. Kress, a veteran finance executive who has overseen Nvidia's finances through its explosive growth, is widely regarded as a steady hand — but analysts caution that replacing a founder with Huang's technical vision and deep industry relationships is far from straightforward.

Timeline: How the Nvidia Scandal Unfolded in Five Days

The crisis moved with remarkable speed, compressing what might normally be a months-long governance saga into a single week:

November 8: Nvidia's board announces an independent investigation in light of reporting that Huang was the target of a foreign intelligence operation. Huang emails staff acknowledging an affair and apologizing.

November 9: Investors file a class-action lawsuit against Nvidia and Huang, accusing them of securities fraud. NVDA shares fall roughly 4%, slipping below $180 even as the broader market rallies.

November 10: Reporting details Huang's affair with the alleged Chinese intelligence asset, and a second alleged relationship with a subordinate surfaces.

November 11: The board meets to decide Huang's fate. The Wall Street Journal reports the board is preparing to oust the CEO, and shares fall about 6% in premarket trading before closing up 2.87% at $173.73.

November 12: Huang resigns. Kress is named interim CEO. The stock opens at $151.00, down roughly 13%, and briefly touches $148.80 — its lowest level since July 2025.

Why the Huang Scandal Matters for NVDA Stock and the AI Trade

The sell-off is about far more than a personal scandal. Nvidia has been the single most important stock in the market's artificial-intelligence rally, and Huang has been the face and architect of that dominance. The company's shares had soared roughly 1,722% over four years before this week's turmoil, and Nvidia's record close on October 6 marked the peak of a historic run.

The numbers underscore the scale of the damage. Analysts estimate Nvidia shed about $430 billion in market value over just two days, and the stock's overnight low on the resignation news pushed total losses since October's record to more than $600 billion in a single session, according to Yahoo Finance and Forbes. Huang himself saw his personal fortune drop by as much as $13 billion, to roughly $138 billion, Business Insider reported.

There is also a governance vacuum. Some Wall Street analysts had warned that shares could fall by 20% or more if Huang departed, reflecting how much of Nvidia's premium valuation was tied to his leadership. Several analysts downgraded the stock in the days before the resignation, and with no clear AI-ready successor in place, the uncertainty is unlikely to lift quickly.

The national-security dimension adds another layer of risk. If regulators or Congress scrutinize Nvidia's relationships with foreign entities more closely, the company's ability to sell chips into key markets — particularly China — could be affected, further clouding the revenue outlook just as competition from rivals intensifies. The scandal has also dented confidence in a chip sector rally that was already fragile heading into earnings season.

Where Nvidia Stock Stands Now

After the resignation, NVDA shares opened at $151.00 and traded around the mid-$150s in early Thursday trading, roughly 35% below their October 6 record close, according to The Motley Fool. The stock's 52-week range now spans from about $148.80 to $243.37, a reminder of both how far the company has fallen and how high it had climbed.

The sell-off has been broad-based in its impact. Because Nvidia carries an outsized weight in major indexes and in AI-focused funds, the leadership crisis has dragged on the wider technology sector, with chipmakers and AI-adjacent names trading lower in sympathy. Even so, Nvidia remains one of the most valuable companies in the world, and its underlying business — dominant AI accelerators and record demand for data-center chips — has not changed.

What Happens Next: Earnings, a CEO Search, and More Volatility

Investors now face two immediate catalysts. The first is Nvidia's fiscal third-quarter earnings report on November 17, which will be the company's first opportunity to address the scandal directly and reassure shareholders about its leadership transition and business momentum. Analysts still expect record results, but the guidance and tone from interim CEO Colette Kress will matter as much as the numbers themselves.

The second is the permanent CEO search. Kress is a capable steward, but Wall Street will be watching closely for whether the board moves quickly to name a successor with both operational credibility and technical depth. Any delay could prolong the valuation reset that has already shaved about a third off Nvidia's market value from its peak.

History suggests the volatility is not over. Nvidia's stock has repeatedly rewarded investors who bought dips during past crises, but those dips came with a stable, visionary founder at the helm. This time, the company must prove it can thrive without him — starting with next week's earnings report.

The Bottom Line for NVDA Investors

  • Jensen Huang resigned as Nvidia CEO on November 12, ending a 33-year run, after admitting to an affair with an alleged Chinese spy and a second alleged relationship with a subordinate.
  • CFO Colette Kress is now interim CEO as the board searches for a permanent successor.
  • NVDA stock fell roughly 13% on the news and is down about 35% from its October 6 record close, with roughly $1.7 trillion in market value erased.
  • Nvidia reports fiscal third-quarter earnings on November 17, a pivotal test of investor confidence.
  • The company's underlying AI-chip business remains strong, but governance and national-security risks have reset the stock's risk profile.