Nvidia's interim chief executive, Colette Kress, has informed employees that they will receive more details about the company's direction next week, as the chipmaker navigates the aftermath of Jensen Huang's resignation. In an internal email obtained by CNBC, Kress acknowledged an "extraordinarily difficult period" and announced a company-wide meeting scheduled for November 18, one day after Nvidia's quarterly earnings release.
Shares closed Thursday down 4.34% at $166.19, after touching an intraday low of $148.80, as investors questioned whether the company can maintain its technological leadership without the founder who led it for 33 years. The stock remains well below its October 30 close of $204.64.
Kress pledges communication, but offers no new strategy
Kress, who has served as Nvidia's chief financial officer since 2013, thanked employees for their resilience and professionalism, and promised further communication in the coming days. She urged staff to focus on serving customers and the work ahead, but did not outline any new strategy or changes to product plans. Harvey Jones, who was appointed board chair, separately told employees that directors have confidence in Kress.
Nvidia has begun searching for a permanent chief executive, considering both internal and external candidates. Kress will continue to serve as CFO while acting as interim CEO. Jones indicated that existing customer commitments and the product roadmap are expected to continue without interruption, although uncertainty surrounds longer-term strategic decisions.
The six-day gap before the all-staff meeting has drawn criticism. Annie Scranton, founder of Pace Public Relations, told Fortune that employees should have an opportunity to hear from leadership sooner, rather than spending almost a week waiting for answers. Jim Cramer, speaking on CNBC, offered a more supportive assessment, describing Kress as a disciplined leader familiar with Nvidia's operations and investors, who could bring order during the transition.
Strong business faces valuation concerns
Nvidia's underlying demand has not suddenly disappeared. Its fiscal second-quarter revenue reached $96.2 billion, including $89 billion from Data Center, reflecting continued spending on AI computing systems. Nevertheless, Thursday's trading exposed considerable nervousness, with shares falling more than 14% at their intraday low before recovering some losses.
Goldman Sachs analyst James Schneider called Huang's exit a "meaningful, but measured negative for the stock," according to Investing.com. The bank retained its Buy rating and $220 price target, reasoning that committed orders and established product plans should protect near-term performance. Morningstar analyst Brian Colello took a more cautious view, cutting his fair value estimate for Nvidia to $250 from $310. "We still have little evidence of a pause in the AI buildout," he wrote, but warned that leadership uncertainty could damage relationships and future product execution.
Earnings and employee meeting offer two tests
Nvidia will report fiscal third-quarter results on November 17. Previous guidance called for revenue of about $108 billion, plus or minus 2%, and gross margins near 74%. Investors will examine orders, profitability, and comments about the product roadmap. What Kress has not disclosed is equally significant: the meeting's agenda, the shape of a future management team, and any change in corporate priorities.
The next day's employee meeting may reveal whether Kress intends to reorganize management, including responsibility for future AI product development. People familiar with Nvidia told Reuters that she had challenged some of Huang's ambitious financing arrangements, suggesting her approach to risk could differ. Anshel Sag of Moor Insights & Strategy told Reuters that an interim appointment made sense, but questioned whether Kress could supply the long-term technological vision Nvidia needs.
This article is for informational purposes only and does not constitute financial advice.
