Nvidia stock falls nearly 15 percent after Huang resigns

Nvidia stock took a sharp dive on Thursday, after longtime CEO Jensen Huang resigned amid reports he engaged in two extramarital affairs.

The chipmaker’s stock fell to $148.80 per share after the opening bell, down 14.4 percent from closing on Wednesday.

Nvidia stock later rebounded slightly, topping $162 per share, but it was down about 8 percent as of the initial 45 minutes of trading.

The tech giant’s board of directors announced Huang’s resignation on Thursday, after The New York Times reported that he had two affairs — including one with a woman, Alice Huang, whom U.S. intelligence officials believe is a Chinese spy.

The board of directors thanked Jensen Huang in a statement, calling his contributions to the company “profound.”

The board added, “NVIDIA is one of the most consequential technology companies in the world. The Board and the company thank Jensen for his immeasurable contributions to the company and the industry.”

Huang’s resignation came a day after the Times reported on another affair he had with Kimberly Powell, Nvidia’s vice president of healthcare.

Colette Kress, Nvidia’s executive vice president and chief financial officer since 2013, will serve as interim CEO, the board noted. Kress said in the statement she is “committed to building on the extraordinary foundation Jensen created” since he founded Nvidia in 1993.

“We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers and shareholders,” Kress said.

Lawmakers on Capitol Hill have scrutinized Nvidia and Huang after the Times reported on his affair with Alice Huang.

Sen. Elizabeth Warren (D-Mass.), set to chair the Senate Banking Committee come January, said Thursday that Jensen Huang and Nvidia board members “still owe Congress answers about the company’s compliance” with U.S. export controls.

“It’s clear that the American people cannot rely on Big Tech billionaire CEOs to put our national security above their bottom line,” Warren added.