- Nvidia shares dropped 12.75% by Friday’s close, erasing roughly $573 billion in market value.
- Longtime CFO Colette Kress was named interim CEO as the board faces intense questions ahead of Tuesday’s Q3 earnings report.
- Lawmakers have scheduled a closed-door congressional hearing for December 1, threatening a subpoena if Huang does not testify voluntarily.
A day after Jensen Huang resigned from Nvidia, Silicon Valley is already anticipating his comeback, POLITICO reported.
As a close ally of Donald Trump, regularly taking calls from the president, Huang became one of the most influential voices in Washington for the tech industry.
That departure left a vacuum at one of the world’s most profitable companies, which has served as the backbone of the artificial intelligence boom. While national security hawks and tech skeptics in Washington prepare to bring further scrutiny of his affair, Silicon Valley leaders are mourning his swift exit.
China wants Jensen out, so I want him in.
“Nvidia’s corporate org structure had Jensen at the top and then no second layer of command and then like 60 people below him,” Stephen Witt told PBS.
Intelligence Agencies Assess Alice Huang's Ties to China
According to The New York Times, authorities believed that Alice Huang—the Chinese executive at the epicenter of the Nvidia espionage controversy—leveraged her romantic involvement to assist Beijing in bypassing American barriers on sophisticated AI microchips. Intelligence agencies are still assessing when she began working with China’s top spy agency and whether her cooperation was willing or coerced.
Thank you @JensenHuang for 33 years of bold leadership. You built a small startup into America’s most valuable company, with relentless improvement. Your grit and perseverance should always be remembered. Your personal generosity with time and advice to founders like me has…
Although Nvidia’s board initially expressed backing for his leadership on Sunday, they stated at the time that they would probe whether Huang had been the target of foreign intelligence operations. By Wednesday night, growing national security concerns on Capitol Hill and reports of an additional extramarital relationship forced the board to act.
| Metric | Value |
|---|---|
| Weekly Share Decline | 12.75% |
| Market Value Erased | ~$573 billion |
| S&P 500 Index Weight | ~6% |
| Tenure at Nvidia | 33 years (since 1993) |
Lawmakers Threaten Subpoena as Nvidia Stock Decline Affects Markets
Huang has been called to testify in a closed-door congressional hearing on December 1, and lawmakers have stated they will issue a subpoena if he does not agree voluntarily, CNN reported. Commerce Secretary Howard Lutnick has also agreed to testify next month before the Senate Banking Committee.
Because Nvidia comprises about 6% of the total value of the S&P 500 index, the stock’s decline has broad implications for retirement accounts and broader market stability. Investors await interim CEO Colette Kress during Nvidia’s third-quarter earnings report on Tuesday.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
More on Silicon Valley
NEW, from me and @TortorelliPaige: the surprising connection between alleged Chinese spy Alice Huang and NVIDIA’s biggest Chinese competitor, Huawei: https://t.co/x3UhdxnSr4
Elon Musk says a petition to reinstate Jensen Huang as $NVDA CEO is underway and that he plans to sign it. That comes as Nvidia employees are already pushing for Jensen’s return. pic.twitter.com/nOur0HR0sD
Some $NVDA employees are calling for Jensen Huang to return with an internal post drawing over 1,600 comments, including calls to give him a “second chance.” Turns out making your employees millionaires earns you quite a bit of loyalty. pic.twitter.com/A8LwRqDsaq
