Nvidia NVDA$165.18 fell as much as 14% on Thursday after Jensen Huang resigned as president, chief executive and board member with immediate effect.
The resignation follows reports of Huang having a second extramarital affair, with an employee. He had already admitted to an affair with a woman identified by U.S. intelligence agencies as a Chinese spy.
While Chief Financial Officer Colette Kress was named as interim CEO, the departure of Huang, who co-founded the company in 1993, marks a major leadership change for the chipmaker, whose processors underpin much of the artificial intelligence industry.
Investors now face uncertainty over succession, strategic continuity and the implications for confidence across the broader AI sector, which often acts as a proxy for the cryptocurrency market.
The shares dropped to as low as $148.80 and were recently trading around $165, around 5% lower than its previous close. The broader stock market had already experienced downward pressure on speculation that Huang’s position was hanging in the balance, with Nasdaq 100 index futures and S&P 500 index futures dropping before the start of regular trading.
Shares in bitcoin mining companies-turned AI data center firms sank following the announcement, with Cipher Digital CIFR$7.2650, IREN IREN$19.68 and Terawulf WULF$13.47 dropping 5%-10%.
Bitcoin BTC$71,877.19 showed little initial reaction to the news, continuing to trade just under $72,500, 1.7% lower over 24 hours. The largest cryptocurrency subsequently dropped toward $71,000 following bearish inflationary comments from Cleveland Fed President Beth Hammack, who called for a more restrictive policy from the U.S. central bank.
