Jensen Huang Steps Down As Nvidia CEO Amid 'China Spy' Affair Scandal

Nvidia CEO Jensen Huang stepped down from his position on Thursday amid the spy affair scandal and the Chief Financial Officer of the company Colette Kress will be taking over as the interim CEO.The company will look for a permanent successor and Huang will not remain on the board, it said in a statement."The Board is initiating a search for a permanent Chief Executive Officer and will consider internal and external candidates," the statement read.READ | Read Nvidia's Full Statement Replacing CEO Jensen Huang Amid 'Spy' Affair RowThe pressure was mounting on Huang, the 63-year-old co-founder and fourth-largest investor of Nvidia, after reports earlier in the day that he also had an extramarital affair with a subordinate who reported to him.After reports of Huang's second affair surfaced, Nvidia's board met on Wednesday to consider his ouster.Last month, The New York Times reported that US intelligence agencies uncovered a close relationship between Nvidia CEO Jensen Huang and Alice Huang, determining that she was passing intelligence directly to Beijing. Following Nvidia's announcement of an internal probe on Sunday, US President Donald Trump confirmed on Monday that the FBI is also investigating the matter.READ | Jensen Huang Resignation Live Updates: Nvidia Shares Crash 12%While Nvidia reported no reason to suspect a breach of national security or internal secrets, the company confirmed its investigation will review all available data.Trump Said Huang Did Not Know The Woman Was A SpyMeanwhile, US President Donald Trump said on Monday that Huang told him he had no idea that the woman was a spy and that he believed him."I asked him that question 'Did you have any idea that she was a spy?' He said 'I had no idea that she was a spy' and I really believe him," Trump told a White House briefing."I know the FBI is looking into it," Trump said. "I think that he'll be in good shape."China has denied any involvement in an alleged effort to compromise Huang, the head of one of the world's most valuable corporations.Under his leadership, Nvidia has become the premier manufacturer of AI-powering semiconductors, and his lobbying efforts in Washington paid off in January when he obtained approval from the Trump administration to export H200 chips to the Chinese market.Nvidia Shares 13% DownNvidia's shares plunged 13 per cent in premarket trading on Thursday. Investors will now be looking ahead to Nvidia's results call next week.The stock has shed over a third of its value since setting a record high last month, wiping around $1.7 trillion off its market capitalisation."NVIDIA will report its third-quarter fiscal 2027 financial results on Tuesday, November 17, at approximately 1:20 p.m. PT, as previously scheduled, followed by its earnings call at 2 p.m. PT," the company said in its statement.