Jensen Huang, cofounder and CEO of Nvidia for 33 years, resigned on Thursday, November 13, 2026, effective immediately, following revelations of two separate extramarital affairs [1][2]. One affair involved a woman suspected of being a Chinese spy, while the second involved a company executive—specifically the vice president of health care [1][2]. Huang sent an apology letter to employees acknowledging he had been "unfaithful to my wife," and the board subsequently named finance chief Colette Kress as interim CEO while conducting a search for a permanent successor [2].
The resignation has triggered a severe market selloff for Nvidia. As of Thursday's close on November 13, Nvidia shares fell 4.3%, bringing weekly losses to 11% [2]. More significantly, the stock is headed for its sixth straight weekly decline—the longest losing streak since 2012 [2]. Over this entire decline period beginning in early October, Nvidia has lost approximately $1.6 trillion in market capitalization and has fallen below Apple in market value [2]. The stock has declined 29% from its peak during this stretch [2].
The timing of Huang's departure compounds existing market pressures. Prior to the resignation announcement, Nvidia shares had already dropped about 9% the previous week, with much of that decline attributed to the midterm elections that resulted in Democratic victories and ballot measures that could slow artificial intelligence buildout [2]. The scandal also carries significant geopolitical implications, as it involves allegations of Chinese espionage related to cutting-edge AI technology during an intensifying U.S.-China tech rivalry [1]. The shock waves extend beyond Nvidia itself; the company is a critical customer of Taiwan's TSMC and plays a central role in Asia's technology supply chains [1].
Analyst sentiment has turned cautious. Gil Luria at D.A. Davidson lowered his price target to $200 from $300 while maintaining a buy rating, stating "With the unfortunate departure of CEO Jensen Huang we expect a challenging transition for NVIDIA over the next few months" [2]. Oppenheimer analysts noted that despite solid earnings expectations, "we expect fundamentals to take a backseat near term" and warned that "The departure of Mr. Huang could, in our view, translate to a lingering share overhang" [2]. The departure of Huang—a charismatic figure synonymous with Nvidia's brand identity—raises concerns about leadership continuity and the company's ability to maintain momentum in the competitive AI chip market [1].
CONCLUSION
Nvidia faces its most severe market crisis in over a decade following Jensen Huang's resignation amid an espionage scandal, with the stock experiencing its longest losing streak since 2012 and shedding $1.6 trillion in market value. The leadership vacuum and geopolitical sensitivities surrounding the scandal have prompted analyst downgrades and warnings of a challenging transition period, with market sentiment heavily negative despite underlying business fundamentals remaining solid. The implications extend beyond Nvidia to Asia's technology supply chains and the broader U.S.-China tech competition.