This announcement follows the board's investigation into reports about Jensen Huang’s personal conduct.
Colette Kress will serve as interim CEO and will also keep her CFO role. The board has started a search for a permanent replacement and will consider candidates from inside and outside the company.
The shares fell 7.4% in early trading.
Quick Take
Nobody had this on their 2026 bingo card. Investors are now being asked to back an Nvidia without its founder at the helm. His importance stretches well beyond the chief executive’s office, so replacing him is about more than filling a vacancy. Plenty will put the shares in the too-hard bucket for now, and we don’t blame them.
The challenge is separating uncertainty over leadership from the outlook for the business. We don’t expect a material shift in earnings expectations for the next couple of years, but investors may be less willing to pay the same price for those earnings until there’s greater clarity on succession. During a 3+ year timeframe, the market will rightly have some questions about pricing, supply chain management, new technology roadmaps, etc., and we expect longer-term growth and margin forecasts to come down.
There will be an Nvidia after Jensen, though, and a company is not one man. We still see a fundamentally excellent business. At a low double-digit earnings multiple, we think that the valuation offers an attractive opportunity for investors with a strong stomach and a long-term horizon, although neither removes the risks.
Next week’s third-quarter results are the next key test, and with so much uncertainty in the air, there’s a long road ahead to regaining investor confidence.
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The author holds shares in Nvidia.
Nvidia key facts
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