Nvidia Shares rose slightly in premarket trading Friday as investors weathered the fallout from Jensen Huang’s resignation following at least two reports of extramarital affairs.
Shares fell sharply on Thursday, before rebounding after closing more than 4% lower.
Hwang resigned as Nvidia’s CEO on Thursday after the New York Times reported that Hwang had been romantically involved with Kimberly Powell, Nvidia’s vice president of healthcare.
Mr. Huang was already under intense scrutiny following a board investigation into his ties to a businessman who intelligence agencies say is a Chinese spy.
Reuters reported on Thursday the existence of another affair with an Nvidia employee, but the news agency did not name him. Nvidia did not immediately respond to CNBC’s request for comment.
Nvidia stock was up 1.3% as of 4:14 a.m. ET.
Nvidia stock price over the past 5 days.
Before Huang’s resignation, multiple Wall Street analysts told CNBC that his departure could cost NVIDIA 20% of its market value, given how important he was to the company’s success. Nvidia stock has already fallen more than 20% in the last month.
Stefan Fourie, head of equity research at ODDO BHF, said much of the company’s success was built around Mr Huang.
This isn’t just about Nvidia, it’s also about “the architecture of the AI industry that relies heavily on vision” and Huang’s expertise, Houli said Friday on CNBC’s “Squawk Box Europe.”
