Colette Kress takes over as interim chief executive of Nvidia (NASDAQ: NVDA) following Jensen Huang’s departure, navigating fraught industry conditions and looming congressional oversight.
- Colette Kress becomes interim CEO at Nvidia, replacing Jensen Huang as the company faces increased corporate and regulatory scrutiny.
- Nvidia shares rose in premarket trading after falling 14% on Thursday, while competitor chipmakers like Broadcom and AMD saw initial gains before paring back.
- Jensen Huang has been called to testify before Congress as Nvidia faces a complicated picture.
Jensen Huang is out as chief executive of Nvidia, leaving executives, investors, and policymakers to assess the fallout of the artificial intelligence boom, the New York Times reported. Colette Kress, previously the chipmaker’s chief financial officer, has taken over the position on an interim basis. Her ascension places a risk-averse financial operator at the helm during a turbulent period for the semiconductor industry.
The departure follows reports that Huang belittled Kress during an August meeting regarding credit guarantees, calling her a “deer in the headlights,” according to the Wall Street Journal. That financial architecture included significant commitments: Nvidia reported in August that it had provided customers with up to $164.5 billion in guarantees to backstop deals.
Dark, dark day. Horrible decision for the U. S. and the western world.
“Without Huang, there is no lender or buyer of last resort,” Yoni Rechtman told DealBook, calling the transition the end of an era for Silicon Valley.
Washington lawmakers are turning up the heat on both Nvidia and Commerce Secretary Howard Lutnick. Several Republican representatives have demanded testimony regarding the oversight of chip exports, questioning whether the Commerce Department acted in the best interests of the United States. Meanwhile, Democrats poised to take control of Congress in January have signaled intentions to launch formal hearings.
Sad about Jensen. Shakespearean. But as de Gaulle said, “The graveyards are filled with indispensable men.”
President Trump spoke with Huang on Tuesday to urge him to fight for his position, viewing the company as a national artificial intelligence champion, the New York Times reported.
Rival chipmakers experienced immediate market movements as the news broke. Shares in Broadcom (NASDAQ: AVGO) and Advanced Micro Devices (NASDAQ: AMD) jumped 5% on Thursday before shedding some of those gains by Friday. Other potential beneficiaries include major cloud providers like Amazon and Google that sell competing hardware.
| Company | Ticker | Market Movement |
|---|---|---|
| Nvidia | NVDA | Fell up to 14% on Thursday, recovered in premarket |
| Broadcom | AVGO | Rose 5% on Thursday |
| Advanced Micro Devices | AMD | Rose 5% on Thursday |
Market analysts remain uncertain whether Nvidia’s interim leadership will maintain its aggressive ecosystem financing. “The answer is hopefully yes, but probably no,” Tomasz Tunguz told DealBook.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
