Nvidia CEO resigns amid spy affair allegations, stock drops 13%

Nvidia founder Jensen Huang has resigned following revelations of an affair with a suspected Chinese spy and allegations of two additional affairs with employees, triggering a 13 percent stock drop in five trading days. The company's CFO has taken interim charge as succession planning begins. The crisis has erased 27.3 percent of Nvidia's market value over the past month, partly due to unwinding of the AI trade amid rising rates and Republican losses in mid-term elections. Huang's departure leaves a leadership vacuum, with 60 executives who reported directly to him facing an uncertain transition. The fallout threatens Nvidia's role as a linchpin in the AI industry, with $124 billion in investments and potential US-China chip export tensions. Democrats may launch investigations, while President Trump has proposed Apple's Tim Cook as a possible successor.