CEO Jensen Huang Resigns Amid Scandals, Nvidia Seeks Successor

Nvidia’s CEO Jensen Huang resigned on Thursday after 33 years of leadership. The board thanked him for his contributions since cofounding the company in 1993. Executive Vice President and CFO Colette Kress will serve as interim CEO.

Huang left following reports of two affairs. One involved a Chinese national suspected of espionage by U.S. intelligence. The other was with an Nvidia employee. These reports caused analyst reactions and stock diversification earlier than the official announcement.

Analysts and markets were worried about Nvidia’s future without Huang, who built the company into a multitrillion-dollar chipmaker. “Jensen is Nvidia. He is the visionary,” stated Bernstein Senior Analyst Stacy Rasgon, as Nvidia’s stock price target was reduced by 50 percent to $200.

Concerns intensified due to Nvidia’s lack of a clear successor. John C. Coffee Jr., a corporate governance expert, noted Nvidia’s notably flat organizational structure with no senior executives to step up easily. The board is now searching for a permanent CEO, considering internal and external candidates.

Potential Candidates for CEO

A few names have surfaced as possible successors to Huang.

1. Ian Buck, Nvidia
   Buck, Nvidia’s VP in hyperscale and high-performance computing, plays a key role. He created CUDA, software pivotal for Nvidia’s GPUs’ versatility. Buck is seen as a preferred candidate by some analysts. “Ian Buck is the strongest long-term internal candidate,” noted Shay Boloor of Futurum Equities.
2. Tim Cook
   Cook, the former Apple CEO, increased the company’s value from $350 billion to $4.7 trillion. Donald Trump proposed Cook as Huang’s successor. Analyst Dan Ives sees him as a top contender due to his significant industry experience and well-regarded leadership.
3. Colette Kress, Nvidia
   Kress, acting as interim CEO, is another possible successor. She guided Nvidia’s revenue growth from $4 billion to $216 billion. Despite past tensions with Huang, she is well-regarded in leadership making her among favored choices.
4. Renee Haas
   Haas, CEO of ARM Holdings, previously worked in Nvidia as VP of computing products. Morningstar’s Brian Colello finds Haas a strong external candidate due to her semiconductor expertise and leadership record.
5. Lisa Su
   Su, CEO of AMD, turned the company into a trillion-dollar AI giant. Her semiconductor experience and family connection to Huang make her a notable candidate. According to Paul Triolo, a seasoned industry figure might be ideal for smooth transitional leadership.

The Path Forward for Nvidia

The market remains on edge awaiting a permanent CEO decision. Analysts like Gautham Marthandan highlight rapid shifts in executive market dynamics, noting Huang’s exit shot probabilities from 13.2% to 76.6% in days.

While some believe the CEO pick will minimally impact, Huang’s secretive affairs birthed challenges, including legislative pressure and lobbying setbacks. Chris Miller, author on tech policy, commented that the scandal reduces Nvidia’s influence in tech policy making toward China.

Regardless, many remain optimistic about Nvidia’s path. Tae Kim noted: “Jensen’s departure doesn’t mean the company instantly goes to zero. The next two years are already baked in.”