NVIDIA Corp. (NASDAQ:NVDA) stock plunged Thursday after the company announced the immediate resignation of CEO Jensen Huang.
NVIDIA named Chief Financial Officer Colette Kress as interim CEO and appointed Harvey C. Jones as its first board chair.
The company has not set a timeline for naming a permanent CEO, raising concerns about prolonged leadership uncertainty.
The shake-up comes as NVIDIA faces growing political, regulatory and governance scrutiny tied to Huang and China.
Meanwhile, broader technology stocks remained under pressure. Nasdaq futures fell 1.17%, while S&P 500 futures declined 0.62%.
Cramer Backs Interim CEO, Warns NVIDIA Stock Could Fall Further
CNBC's Jim Cramer said Jensen Huang's resignation was inevitable amid mounting controversy. "I think that had to happen," Cramer said, citing what he described as overwhelming evidence.
He also suggested Huang had been negotiating his exit for some time and cautioned investors against rushing to buy NVIDIA shares.
Cramer said the stock could initially fall 10% to 15% as investigations continue.
However, he expressed confidence in interim CEO Colette Kress, saying, "I like Colette very much."
He added that Kress "will provide some needed order," citing her deep knowledge of NVIDIA's operations and longtime role as a company spokesperson.
Cramer also rejected concerns that NVIDIA cannot succeed without Huang. He pointed to the company's roughly 42,000 other employees, describing them as "really brilliant people."
Looking ahead, Cramer expects strong quarterly results next week. He said higher earnings guidance or a sizable share buyback could provide upside.
However, he suggested NVIDIA may need to look outside the company for a permanent CEO.
Ives Sees Huang's Exit As Potential Turning Point
Before the resignation announcement, Yorkville Ives partner Dan Ives warned that NVIDIA's board could face mounting pressure to remove Huang.
Ives said continued negative disclosures could damage NVIDIA. However, he suggested Huang's departure might ultimately ease congressional and regulatory scrutiny.
Despite the leadership turmoil, Ives believes NVIDIA remains two to three years ahead of competitors.
He expects the company to capture a meaningful share of the $3 trillion to $4 trillion in projected AI spending.
National Security Experts Sound Alarm
Former CIA officer David Fitzgerald warned that the situation resembles a Chinese intelligence operation.
He urged investigators to determine whether sensitive technology or information reached China.
Former White House CIO Theresa Payton called for stronger chip tracking and warned about NVIDIA's succession risks.
Meanwhile, Dmitri Alperovitch, chairman of Silverado Policy Accelerator, said Huang could lose his position if investigators uncover deliberate export-control violations.
Munster Says NVIDIA's AI Dominance Can Survive Huang's Exit
Deepwater Asset Management's Gene Munster warned before the announcement that Huang's departure could trigger further selling pressure.
However, Munster expects demand for NVIDIA's AI chips to remain strong despite the leadership change.
He estimates NVIDIA controls 85% to 90% of the advanced GPU market.
Munster also sees little reason for customers to switch to Advanced Micro Devices Inc. (NASDAQ:AMD) solely because of Huang's departure.
Hightower's Stephanie Link said before Huang's resignation that she was holding NVIDIA shares but avoiding new purchases because of leadership uncertainty.
Despite those concerns, Link believes NVIDIA could earn $20 per share in fiscal 2028.
Washington Scrutiny Adds to NVIDIA's Leadership Crisis
Rep. John Moolenaar, chairman of the House China Select Committee, said Congress wants answers about potential Chinese influence, sensitive information and chip allocation.
Meanwhile, Kindred Ventures' Kanyi Maqubela compared NVIDIA to a central bank within the AI industry, citing its influence through chip sales and investments.
He warned that tighter export controls could threaten future revenue.
Huang's departure leaves NVIDIA navigating these challenges under interim leadership as its board searches for a permanent successor.
NVDA Price Action: NVIDIA shares were down 7.76% at $160.24 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to market data.
