Nvidia shares tumble as CEO Jensen Huang scandal widens

Nvidia is searching for a new leader after co-founder Jensen Huang resigned following a week of allegations about his personal life, and the fallout has now reached the US government.

The company named its chief financial officer, Colette Kress, as interim chief executive. It has not said whether she will keep the job permanently or whether an outside candidate will be chosen.

What has been reported

Huang stepped down after multiple allegations of extramarital affairs. Those reports include claims that one relationship was with a woman whom US officials regard as a Chinese spy, and that two others involved company employees. These are allegations, and the details have been reported by the media rather than established in court.

The company's share price fell as the story developed, as investors weighed the loss of a founder who many had described as irreplaceable.

Why markets reacted

Huang has been closely tied to Nvidia's rise as a maker of the chips that power artificial intelligence. A sudden change at the top creates uncertainty about strategy, relationships with customers and the pace of new products. Some commentators argue he had become a political liability once the alleged link to a foreign intelligence agent emerged, and that the board had little choice but to act.

The political fallout

The story has also become a dispute inside the Trump administration. The US treasury secretary, Scott Bessent, has suggested the commerce department, led by Howard Lutnick, failed to impose export restrictions on Nvidia chips going to a company suspected of Chinese ties. Lutnick is said to face mounting pressure, and questions are being raised about what senior officials knew about the alleged spy's connections.

What it means for investors

For people who own Nvidia shares, directly or through funds, the key questions are who will lead the company and whether any export rules change. A permanent chief executive announcement would likely calm some of the uncertainty. Any new limits on chip sales to China could affect the company's revenue.

What happens next

The board has to decide whether to confirm Kress or run a wider search. Officials in Washington may also face further scrutiny over export controls. More details are expected as the inquiry into the allegations continues.