Nvidia and Jensen Huang fallout: Here’s everything we know after a memorable week

The breakneck pace of the Nvidia (NVDA) scandal has left everyone a little disoriented. So we thought we’d put together a big recap of what happened – and what we’ve been thinking about to help make sense of this very fluid situation.

Nvidia co-founder and CEO Jensen Huang has resigned under pressure from the board. The double of an affair with an alleged Chinese spy, Alice Huang, then the news of another with an Nvidia executive (plus a third with an unnamed employee revealed Thursday afternoon) proved too much for the company’s board of directors to ignore. Huang was one of the longest-serving CEOs in the S&P 500 (^GSPC), with a tenure of 33 years.

CFO Nicole Kress is now the interim CEO. Kress has been with the company since 2013 and has been a mainstay of earnings calls as its financial manager. She will have an immediate test: The company will still report earnings next Tuesday, and markets want to know whether it will continue Huang’s “Bank of Nvidia” approach to circular trading. This entire network is now under the microscope.

What does this mean for revenue? Not much, beyond all the questions Kress will have to answer. This quarter is over. But all eyes will be on the outlook and whether Nvidia appears to be putting its act together.

Nvidia stock fell 4.3% on the day of Huang’s resignation. It initially fell as much as 14% Thursday morning, but recovered. It momentarily became the third most valuable company in terms of market capitalization, behind Apple and Microsoft.

From a contextual perspective, this is NVDA’s stock price in 2025. The stock is down 13% over the past five days, 25% over the past month (and the past six months), and 12% so far this year. And 14% compared to a year ago. The stock is essentially back to summer 2025 levels.

Retail investors bought the dip. A big part of why that double-digit loss only became 4.3%? People love you. As one analyst, Mike Zaccardi, told X, it was “one of the most epic news buying events in history.”

Wall Street lowers its price targets. Dan Ives of Yorkville Ives, a major Nvidia bull, lowered his price target from $300 to $225, valuing Huang’s leadership at a 25% premium. The long-term outlook, overall, appears clouded, but most of the analyst notes we’ve read indicate that Kress’s knowledge of the industry makes her seem like a steady pair of hands.

The CEO search is going to be crucial. Already, speculation over the identity of the new permanent CEO has reached fever pitch, with President Trump suggesting that Tim Cook would be “the only man to replace him.”

Prediction markets favor Ian Buck as long-term successor. Kalshi and Polymarket give Nvidia’s VP of Hyperscale and High Performance Computing a one in three chance. This is who he is. Still, it’s not a high probability, and it could be anyone with electrical engineering prowess or a lot of big tech experience – preferably with charisma.

Another option considered: ARM CEO René Haas.

And the other co-founder? You may have noticed that Jensen Huang is the “co-founder” of Nvidia, not the founder. The other, Chris Malachowsky, is an engineer with tons of patents and “founder” credibility who also led Nvidia’s research. This is another name to watch.

The House Speaker said Huang had agreed to testify before Congress. Before Thanksgiving, and under oath, most likely. Huang can’t retire to a beach anytime soon to escape scandal.

Democrats asked Nvidia to keep all records. This clearly indicates that the Chinese scandal is only just beginning, despite Huang’s departure.

Chinese AI is much cheaper for businesses. Understanding why the Nvidia China scandal matters starts with the classic Chinese pricing advantage: Doing things there is simply cheaper. Duolingo CEO Luis von Ahn told us this week that each AI interaction used to cost 30 cents and now costs less than a cent, thanks to open-weight AI models, many of which are in China, like Alibaba’s.

The alleged spy is under investigation as part of an investigation into the smuggling of Super Micro products. The Justice Department is investigating whether Alice Huang helped smuggle server products using Nvidia chips to circumvent export controls.

The Huang affair could change Washington’s approach to China. All of a sudden, controlling chip exports to China became the hot topic in Washington, going from a farcical policy position to the centerpiece of an (alleged) espionage scandal. The whole situation is confusing due to Nvidia’s business alignment with China’s import interests.

Commerce Secretary Howard Lutnick is also testifying amid rumors he will be deported. Lutnick, who has advocated for easing Chinese chip export controls, has been in the spotlight as bipartisan criticism mounts over his handling of the espionage allegations and security breach. Pencil on December 10 in the Senate Banking Committee, led by Republican Senator Tim Scott of South Carolina.

There is a glimmer of hope if you are feeling generous. Without Huang, the AI ​​business will have to rely solely on substance, not style. If it passes this test without its star, it will indicate that this whole thing is built on a rock-solid foundation capable of surviving the largest earthquakes.

Elon Musk says he would hire Huang. In the most obvious or crazy way, Musk said hiring Huang “would be an honor” in a response on X. No specifics, and he’s probably just riffing, but it’s quite something to imagine.

Huang’s mood completely changed at the end. A Bloomberg report painted a picture of emotional abandonment, not just resignation, as his life’s work was ripped from his hands. (By his own actions.)

Follow Ethan Wolff-Mann on X @ewolffmann.