Nvidia Removes Jensen Huang as CEO Amid Scandal

Nvidia’s board met through Wednesday evening to consider Huang’s future. The company’s longtime chief executive was removed on Thursday, with chief financial officer Colette Kress taking over on an interim basis. The board’s deliberations came amid a Chinese espionage scandal and allegations of a second affair involving a company executive.

Before the announcement, Citi analysts Atif Malik and Papa Sylla lowered their Nvidia price target to $225 from $285. They had anticipated Kress might serve as interim chief while the board considered external candidates. They warned that Huang’s departure could weigh on the stock because he played a central role in the company’s strategy, product vision and customer relationships.

Dan Ives of Yorkville Ives & Co. put Nvidia’s value at $300 per share with Huang as CEO and $225 without him. He said the turmoil could pressure the stock, but expected the company to recover and remain central to the AI industry.

Nathan Thooft of Manulife Investment Management said Nvidia had talent among its 40,000 employees to carry out existing plans. He said replacing Huang’s strategic foresight would be a greater challenge. Former Nasdaq chief Robert Greifeld criticized the board’s succession planning and said it needed to determine whether Huang had lied to directors. Jim Cramer said, “He had to go.”