Washington, DC – American multinational technology company Nvidia saw its stock tumble after co-founder and longtime CEO Jensen Huang resigned.
Huang’s immediate resignation on Thursday, 12 November 2026, capped a turbulent week of revelations about extramarital relationships—including one with a woman U.S. officials allege was a Chinese intelligence asset and another with a subordinate executive.
The board named Chief Financial Officer Colette Kress interim CEO and said it would search for a permanent successor, considering both internal and external candidates.
(Source: wired.com)
Shares fell as much as 14% intraday before closing down about 4.3%, contributing to roughly $180 billion in market value erased on the day and nearly $500 billion for the week, according to multiple reports.
The company, long the dominant supplier of AI chips powering the global artificial intelligence boom, saw its valuation slip near or below the $4 trillion mark after previously approaching $6 trillion at peaks earlier in the year.
Analysts pointed to investor uncertainty over succession at a firm long synonymous with Huang’s vision, customer relationships, and product roadmap.
(Source: theguardian.com)
Huang’s departure followed the board’s launch of an independent investigation after The New York Times reported his relationship with Alice Huang (also known as Huang Le), a former executive at Singapore-based AI infrastructure firm Megaspeed.
U.S. intelligence assessed her as an asset of China’s Ministry of State Security who may have funneled information to Beijing.
Huang admitted in a weekend memo to employees that he had been “unfaithful” to his wife, apologised to his family and the company, and pledged full cooperation.
Nvidia’s board stated it had no reason to believe national security or company secrets were compromised but prioritised examining the matter.
A subsequent New York Times report detailed a separate alleged relationship with Kimberly Powell, Nvidia’s vice president of healthcare and a direct report, which sources indicated weighed heavily in the board’s decision.
(Source: wired.com)
National security worries in Washington
The scandal has amplified fretting across U.S. political and national security circles.
Nvidia sits at the center of America’s technological edge in AI; its advanced GPUs are subject to strict export controls aimed at slowing China’s military and technological advances.
Officials and lawmakers have long worried about Chinese efforts to acquire restricted chips through third-country intermediaries or other means.
Megaspeed’s large purchases of Nvidia hardware and the alleged intelligence links raised fresh questions about whether sensitive information, strategic insights, or influence over policy flowed improperly.
Congress has shown growing consensus for tighter limits on chip exports to China.
Huang had been a prominent advocate for preserving some access to the Chinese market, arguing it supported U.S. innovation and competitiveness.
House Speaker remarks and committee interest underscored bipartisan concern that personal relationships could undermine export controls or create vulnerabilities.
Huang had agreed to a closed-door congressional briefing. Critics argue the episode highlights risks when industry leaders maintain close ties with foreign counterparts amid intense U.S.-China rivalry in AI.
Beijing has denied the spying allegations, calling them groundless and intended to smear China.
(Source: reuters.com)
Trump’s shifting response
President Donald Trump, who had cultivated a close relationship with Huang and frequently praised the executive’s contributions to American AI leadership, initially defended him.
Trump described Huang as an “honorable man” and “fine person,” said he believed Huang’s claim of having no idea about any spy connections after speaking with him, and noted the FBI was looking into the matter.
He suggested Huang should remain in the role early in the week.
After the resignation, Trump’s tone turned more somber. He called the development “a horrible thing” and said it was “so sad to see it happen,” while still lauding Huang’s “fantastic job.”
On Truth Social, Trump proposed Apple’s Tim Cook as a replacement, writing that “a Legend replaces a Legend.”
In later comments, Trump said whether Huang should have stepped down depended on whether Alice Huang was in fact a spy—an issue still under investigation.
He also noted Huang was “going through hell,” particularly over the impact on his family.
Trump had previously presented Huang with the National Medal of Science and included him in high-level engagements.
(Source: livemint.com)
Shadow over Trump-Xi meeting
The timing intensifies scrutiny ahead of Trump’s planned trip to China for the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen next week, where he is expected to meet President Xi Jinping.
encounter will be among their meetings this year and comes amid a fragile trade truce.
Chip export policy, AI competition, and technology controls are likely topics.
Huang had accompanied Trump on a previous Beijing visit and lobbied successfully at times for adjustments to restrictions, including allowances for certain advanced chips with revenue-sharing arrangements.
His absence and the surrounding scandal could harden congressional and internal pressure for stricter controls, testing the administration’s balancing act between commercial interests, national security, and bilateral relations.
Analysts note the episode may complicate efforts to maintain dialogue while protecting U.S. technological advantages, even if core commercial and strategic dynamics between Washington and Beijing remain largely intact.
(Source: aljazeera.com)
Huang co-founded Nvidia in 1993 and steered it from graphics specialist to AI powerhouse.
Kress, a longtime executive with prior experience at Cisco and Microsoft, takes the interim helm as the board seeks continuity.
The company has emphasised that operations and its product roadmap continue uninterrupted.
Markets will watch closely for any lasting disruption to the AI ecosystem Huang helped finance and shape, while investigators and lawmakers dig deeper into the personal and national security dimensions of the case. ‘
The episode underscores how intertwined personal conduct, corporate leadership, and great-power competition have become in the age of artificial intelligence.
Disclaimer: This article was compiled using the AI tool Grok on X and may contain inaccuracies
