# Jensen Huang Resigns as Nvidia CEO Amid AI Bubble Scandal

> Nvidia's founder Jensen Huang steps down after affair scandal, sparking 'affair rally' stock theory.
- Title: Jensen Huang Resigns as Nvidia CEO Amid AI Bubble Scandal
- Summary: Nvidia's founder Jensen Huang steps down after affair scandal, sparking 'affair rally' stock theory.
- Keywords: jensen huang, nvidia, ceo, affair, scandal, stock market, ai bubble, nvidia ceo resignation, affair rally, Inc
- Source: Inc — https://inc.com/melissa-angell/jensen-huang-resigns-nvidia-ceo-affair-rally-ai-bubble/91434249
- Read time: 1 min
- Topics: jensen huang, nvidia, ceo, affair, scandal, stock market, ai bubble, nvidia ceo resignation, affair rally
## Jensen Huang Resigns
Nvidia co-founder Jensen Huang resigned Thursday morning after reports of another affair with an executive at his company.

> Nvidia co-founder Jensen Huang resigned Thursday morning after reports of another affair with an executive at his company
## Affair Scandal Details
The scandal involves Huang's alleged affair with an employee at Megaspeed, which has faced allegations of diverting restricted chips to China.

> The scandal involves Huang's alleged affair with an employee at Megaspeed, which has faced allegations of diverting restricted chips to China
## Market Reaction
Nvidia shares dropped about 7 percent, trading around $161 a share on Thursday morning after Huang's resignation.

> Nvidia shares dropped about 7 percent, trading around $161 a share on Thursday morning after Huang's resignation
## Interim Leadership
Nvidia's chief financial officer Colette Kress will lead the company during the executive search following Huang's resignation.

> Nvidia's chief financial officer Colette Kress will lead the company during the executive search following Huang's resignation
## Affair Rally Theory
The internet resurfaces the 'affair rally' stock market theory where tech stocks rally after scandal, particularly extramarital affairs.

> The internet resurfaces the 'affair rally' stock market theory where tech stocks rally after scandal, particularly extramarital affairs
## Historical Precedents
Amazon, Microsoft, Google, and Tesla saw stock increases after their executives admitted to extramarital affairs.

> Amazon, Microsoft, Google, and Tesla saw stock increases after their executives admitted to extramarital affairs
## Market Skepticism
Financial experts argue the 'affair rally' is coincidental and that business fundamentals drive tech stock resilience through scandals.

> Financial experts argue the 'affair rally' is coincidental and that business fundamentals drive tech stock resilience through scandals
## Market Uncertainty
Whether Huang's infidelity affects Nvidia's long-term stock price depends on market rationality and behavioral finance theories.

> Whether Huang's infidelity affects Nvidia's long-term stock price depends on market rationality and behavioral finance theories
## Key takeaway

Nvidia CEO Jensen Huang resigned following reports of an affair with a company executive, triggering a potential 'affair rally' stock market theory.