Nvidia’s board appointed Chief Financial Officer Colette Kress as interim CEO on Thursday following the resignation of founder and longtime CEO Jensen Huang, the company announced. Kress, who has served as CFO since 2013, will oversee operations while the board conducts a search for a permanent successor. The board stated it would consider both internal and external candidates for the role.
Huang’s departure, announced alongside his resignation from the board, triggered a 13% drop in Nvidia’s stock at market open before a partial recovery. The company’s shares had surged in recent years amid its dominance in AI chip production, with Huang credited as the architect of its growth. Kress and newly appointed board chair Harvey Jones sent internal memos to employees, expressing gratitude and outlining plans for a company-wide meeting on November 18 to discuss the transition. Jones praised Kress in his memo, calling her a “key architect of Nvidia’s growth and capital strategy.”
Options traders reposition for recovery after leadership shake-up
Options market activity on Thursday indicated investors were not abandoning Nvidia despite the leadership change. Large trades showed repositioning for a longer-term recovery, including:
- An investor selling put options and buying cheaper ones, collecting $18.9 million while maintaining some downside protection.
- Another investor paying $18.8 million for call spreads betting Nvidia’s stock would rise about 16% by March.
- Purchases of 50,000 January call options, estimated between $45.3 million and $55 million, signaling bullish sentiment.
Seth Hickle, chief investment officer at Mindset Wealth Management, noted that Nvidia’s competitive advantage and customer base were unlikely to disappear overnight. “The market is trying to determine whether this is a temporary leadership crisis or something that fundamentally changes the AI investment thesis,” he said.
Potential successors emerge as board evaluates long-term leadership
Analysts and industry observers have floated two primary internal candidates to potentially succeed Huang permanently:
- Ian Buck, a veteran engineer who developed CUDA, Nvidia’s foundational AI software platform. Buck, who joined in 2004, is credited with enabling Nvidia’s dominance in AI computing through CUDA’s expansion from two libraries to over 900. His technical expertise and deep institutional knowledge have made him a frequent name in succession discussions.
- Colette Kress, who has been with Nvidia for over a decade and is viewed as a stabilizing choice for continuity. She has served as CFO since 2013, appearing alongside Huang in quarterly earnings calls and managing the company’s financial strategy. Some board members reportedly favor her for the interim role, though analysts debate whether she would be selected for the permanent position.
Prediction market Polymarket showed an 83% chance Huang would resign or be removed by year-end, with Buck favored as the next CEO over Kress. However, trading volume on the prediction was noted as small.
Industry impact and strategic considerations
Nvidia’s leadership transition occurs at a critical juncture for the company, which supplies nearly the entire market share of chips powering frontier AI models. Huang, 63, had led Nvidia since its founding over three decades ago and was synonymous with its rise to become the world’s second-most valuable company by market capitalization.
Analysts highlighted challenges in finding a successor with Huang’s strategic vision and technical purview. Patrick Magee, contributing writer for The Free Press, told CBS News that Huang’s role was uniquely expansive: “I don’t know that you can find anyone within Nvidia that has the sort of purview that Jensen has.” Cody Acree, a semiconductor research analyst at StoneX, cautioned against a rushed appointment, stating, “If they name somebody quickly, I think it’d be a mistake.”
Meanwhile, Nvidia’s main rival AMD, led by CEO Lisa Su—Huang’s cousin—saw its stock rise 5% on Thursday. Su, credited with transforming AMD from a struggling firm into a global competitor, has been floated by some observers as a potential external candidate, though no formal discussions have been reported.
Company response emphasizes stability and continuity
In internal communications, Kress and Jones framed the transition as an opportunity for reflection and forward momentum. Kress wrote in her memo to employees: “I believe deeply in this company and in its future. More than anything, I believe in each of you, in our customers and partners, and in the vital role we play every day in the global economy.” She announced the November 18 company meeting to address the future.
Jones, in his memo, emphasized the board’s confidence in Kress and outlined the search process for a permanent CEO. “The Board has full confidence in Colette to deliver on our commitments to shareholders, customers, partners, and to each of you,” he stated.
Market reaction and investor sentiment
Despite the initial stock drop, Nvidia’s shares recovered some ground, reflecting investor confidence in the company’s underlying business. Analysts noted that Nvidia’s technological moat, built on CUDA and its AI ecosystem, remained intact regardless of leadership changes. The options market activity further suggested that traders were hedging against short-term volatility while maintaining long-term exposure to the company’s growth potential.
Experts cautioned that the board’s decision would hinge on balancing technical expertise with strategic leadership, given the company’s pivotal role in the AI industry. The search for a permanent CEO is expected to take time, with some analysts suggesting an extensive evaluation process to ensure continuity in innovation and market position.