Trump suggests Tim Cook replace ousted Nvidia CEO Jensen Huang
President Donald Trump has endorsed former Apple chief executive Tim Cook to take over at Nvidia following Jensen Huang's abrupt resignation amid a misconduct scandal.
President Donald Trump has recommended former Apple chief executive Tim Cook as the successor to Jensen Huang at Nvidia, hours after Huang resigned from the company he co-founded more than three decades ago.
The intervention came on Thursday morning as Nvidia’s board grappled with the fallout from revelations that Huang had engaged in multiple extramarital affairs, including one with a woman U.S. Intelligence agencies believe is a Chinese spy. Trump’s endorsement of Cook arrived as the chipmaker’s shares tumbled, wiping hundreds of billions of dollars from its market value and leaving the future of one of the world’s most valuable companies in doubt.
Media additions
“NOW THAT Nvidia CEO JENSEN HUANG, who has done a fantastic job, has resigned, there is only one man to take his place - TIM COOK of Apple,” Trump wrote on social media, according to reporting by the Daily Mail. “A Legend replaces a Legend!”
Cook stepped down as Apple’s chief executive in early September after 15 years at the helm. Both men have maintained warm relationships with the president, who has praised their companies for leading American technology development in its race against China. Huang and Cook both joined Trump on his trip to China in May, and Huang was invited to fly on Air Force One for part of the journey.
The scandal and Huang’s resignation
Huang, 63, resigned as president, chief executive officer and board member effective immediately, Nvidia announced on Thursday. Colette Kress, the company’s executive vice president and chief financial officer, was named interim chief executive and will continue in her finance role until a permanent successor is found. The board said it would consider internal and external candidates.
The resignation followed a week of intensifying scrutiny. The New York Times reported last week that Huang had become close to a Chinese executive later identified by U.S. Officials as an intelligence asset. This month, after Huang acknowledged the affair, Nvidia’s board opened an investigation led by the law firm Wachtell, Lipton, Rosen & Katz. On Wednesday, the Times reported that Huang had also had an extramarital relationship with Kimberly Powell, Nvidia’s vice president of health care, who reports to him, citing five people who worked at the company.
Huang and Powell, who are both married to other people, were captured on video being affectionate at a San Jose hotel during an Nvidia conference in March, according to two people who worked at the company. The Times has not seen the video.
On Sunday, Huang sent a memo to employees admitting he had been unfaithful to his wife of 40 years, Lori Huang, and apologising for the hurt he had caused. Nvidia’s board responded by launching an internal investigation.
Market reaction
Nvidia’s shares plunged more than 10 percent in early trading on Thursday, extending losses that had already erased hundreds of billions of dollars in market value. The company’s stock is down more than 20 percent over the past month and roughly 17 percent in November alone.
Different outlets put the scale of the sell-off in varying terms. The Independent reported that share prices plunged 12 percent to start Thursday before rebounding to a 5 percent decline by midday, wiping an estimated $500 billion off the chipmaker’s market value. CBS News said the company was on track to lose more than $700 billion since the close of U.S. Trading the previous week, with shares falling $16.54, or 9.5 percent, to $157.19 in early trading. The New York Post reported an 11 percent slide in opening trades and nearly $500 billion in lost market value.
| Measure | Reported figure | Source |
|---|---|---|
| Share price drop at Thursday open | More than 10 percent | Tom’s Hardware |
| Share price drop at Thursday open | 12 percent | The Independent |
| Share price by midday Thursday | Down 5 percent | The Independent |
| Share price early Thursday | $157.19, down 9.5 percent | CBS News |
| Opening trade decline Thursday | More than 11 percent | New York Post |
| Market value wiped out | Estimated $500 billion | The Independent |
| Market value wiped out | Nearly $500 billion | New York Post |
| Potential value lost since last week’s close | More than $700 billion | CBS News |
| Nvidia decline in November | 17 percent | New York Post |
| Nvidia decline over past month | More than 20 percent | CNBC |
| Market value before weekend announcement | $4.5 trillion | BBC |
| Projected market value if shares open at overnight price | $3.8 trillion | BBC |
| Share price before weekend announcement | Just over $188 | BBC |
| Projected share price if shares open at overnight price | $158 | BBC |
The Bbc reported that if Nvidia’s shares opened at the overnight price, they would have fallen from just over $188 each at Friday’s close to $158, tumbling the company’s market value from $4.5 trillion to $3.8 trillion — putting it level with Microsoft but behind Apple.
Rivals appeared to benefit from Nvidia’s crisis. AMD shares rose 4 percent and Broadcom gained 5 percent, according to CNBC. The New York Post cited CNBC figures of 3.9 percent and 3 percent respectively in premarket trading. Shares in Chinese graphics processing unit manufacturers Moore Threads, MetaX and Cambricon surged by more than 8 percent, according to The Star.
Washington and national security
The scandal has drawn sharp attention in Washington. Republican leaders of three House committees — the House Foreign Affairs Committee, the House Select Committee on the Chinese Communist Party, and the House Permanent Select Committee on Intelligence, have asked Huang to appear for a closed-door briefing on his interactions with Alice Huang. The Wall Street Journal reported that Huang is expected to cooperate and meet with lawmakers behind closed doors, though it is unclear how his resignation affects that agreement.
Democratic senators Elizabeth Warren and Chris Coons have written to Commerce Secretary Howard Lutnick demanding that all company records relating to Nvidia’s dealings with China be preserved.
Trump said earlier this week that he had “absolutely no idea” that the first reported affair was with a suspected Chinese spy. “I think he’s an honorable guy,” Trump said, adding that Huang had “done an amazing job for our country.”
Republican Senator Kevin Cramer told CNBC that he would be happy to support a subpoena for Huang, criticising him as a “bold, some might even say arrogant promoter” who dismissed concerns about China’s access to advanced chips.
Leadership transition
Nvidia’s board announced Harvey C. Jones as the company’s first-ever chair of the board. Jones, a venture investor for three decades and former chief executive and executive chairman of Synopsys, expressed full confidence in Kress and the leadership team.
“Colette has helped lead Nvidia through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” Jones said in a statement carried by The Independent. “The board has full confidence in Colette and the leadership team, and we expect the company’s operations, customer commitments and product roadmap to continue without interruption.”
Kress has been Nvidia’s chief financial officer since joining the company in 2013, after nearly 25 years in finance roles at Cisco and Microsoft. In a memo to employees, she acknowledged the difficult period and said the company would host a meeting on November 18.
“NVIDIA’s strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years,” Kress said.
What to watch next
- Nvidia’s board is conducting a search for a permanent chief executive and will consider internal and external candidates.
- Republican leaders of three House committees have requested closed-door testimony from Huang on his interactions with the alleged Chinese intelligence asset.
- Democratic senators have demanded preservation of all Nvidia records related to dealings with China.
- An internal investigation into the affair with Alice Huang remains underway, led by an outside law firm.
Analysts remain divided on Nvidia’s outlook without its founder at the helm. Dan Ives of Yorkville Ives & Co. Estimated Nvidia’s value at $300 per share with Huang as CEO and $225 per share without him, describing the situation as a “black eye moment” but saying the company would navigate the turmoil. Paul Meeks of Freedom Capital said he was buying Nvidia shares “with both hands,” arguing the stock had fallen to “stupid” valuation levels at roughly 10 times fiscal 2028 earnings estimates.
Whether Tim Cook would entertain a move to Nvidia is unknown. Cook has not publicly responded to Trump’s suggestion. For now, Kress leads the company as the board begins its search and Washington investigations continue.
