Jensen Huang has resigned as Nvidia CEO in a truly stunning fall from grace — but it was a necessary decision amid a widening affair scandal, Jim Cramer said Thursday. "It had to happen. There's way too much evidence," Jim said, moments after the chipmaker put out a press release announcing the leadership change. Shares are down more than 8% as of 9:40 a.m. ET. At its lows of the morning, the stock was off over 14%. Longtime CFO Colette Kress was named interim CEO. "I like Colette very much," Jim said. "I think she's going to be terrific in trying to figure out where the pieces are." He added, "I think she'll provide some needed order, so I'm glad she's the one they've given it to." As for Nvidia's stock, Jim reiterated our guidance from Wednesday night: We don't want to step in to buy the stock into this scandal-driven sell-off, but we're not giving up on the company either. Our advice Wednesday followed media reports that made clear Huang's tenure at the chipmaker he co-founded was hanging in…
‘It had to happen’ — Jim Cramer on the resignation of Nvidia CEO Jensen Huang
In short
Nvidia confirmed the executive departure after an investigation revealed relationships with a company subordinate and a foreign cloud executive linked to Chinese intelligence. Longtime Chief Financial Officer Colette Kress has taken over as interim chief executive officer to guide the chipmaker forward. Kress brings extensive tech experience from past tenures at Microsoft, Cisco Systems, and Texas Instruments. Meanwhile, market commentator Jim Cramer endorsed her appointment but cautioned investors against purchasing shares during the sharp sell-off ahead of the upcoming earnings release.
Key points
- Longtime Chief Financial Officer Colette Kress has assumed the role of interim CEO to man…: Longtime Chief Financial Officer Colette Kress has assumed the role of interim CEO to manage the leadership transition.
- Kress possesses deep corporate experience, having joined Nvidia in 2013 following prior r…: Kress possesses deep corporate experience, having joined Nvidia in 2013 following prior roles at Microsoft, Cisco Systems, and Texas Instruments.
- Commentator Jim Cramer recommended that investors refrain from buying the plunging stock…: Commentator Jim Cramer recommended that investors refrain from buying the plunging stock ahead of Nvidia's quarterly earnings report.