Nvidia stock drops after CEO Jensen Huang resigns

This morning, Jensen Huang has officially resigned as CEO of chipmaker NVIDIA. NVIDIA's stock dropped more than 12% in pre-market trading. This, of course, comes after revelations of a second affair with a co-worker and a woman who reports directly to him. Right. Now, KTVU South Bay reporter Jesse Gary is right outside NVIDIA headquarters with more details. Good morning, Jesse. Dave, good morning to you. And multiple news outlets first reported that Huang had been fired, but now we're learning that he resigned of his own accord after the revelations of a second woman who came forward about an affair. We'll go ahead and take a look at our video. The New York Times says that as recently as March, Huang had been seen in an affectionate position in public with Kimberly Powell. She was NVIDIA's health care... and life sciences director. It's a major initiative focused on applying artificial intelligence and accelerated computing to medicine. NVIDIA's internal code of conduct strictly regulates romantic and sexual relationships as potential conflicts of interest. This latest lapse comes after Jensen Huang earlier this week admitted to having an extramarital affair with Alice Huang. She's alleged to be a Chinese spy that helped funnel $7.5 billion Thank you. This is pretty much what one would expect based on the research that I've done with my colleagues that a disclosure of an affair in the media leads to a stock price drop and usually results in termination of a CEO. Decided to resign instead of wait to get terminated as the board had met late Wednesday night to decide his fate. This also, his sacking, does not slow the congressional inquiry into the spy case. Members are asking Huang to testify behind closed doors about his relationship with Alice Huang, but he has not said if he'll do so, and that body could issue subpoenas. President Donald Trump says the FBI is investigating the case, and NVIDIA's board must now find a new CEO to help right the ship, steady the stock prices as the company moves forward. We are live outside NVIDIA headquarters here in Santa Clara. Jesse Gary, KTVU, Fox 2 News. Dave Alley will head back across the bay to Oakland and to both of you. Hi, Jesse. What a story. Time now, 634. Another big story. Democrat Scott Colome is celebrating victory in Mississippi, becoming the state's first black senator since the post-Civil War reconstruction era. Colome edged past incumbent Cindy Hyde-Smith by a little more than 4,600 votes in that deep red state. The last time a Democratic senator represented Mississippi was more than 40 years ago. His victory helps to cement the decisive midterm election rebuke of President Trump. The 43-year-old prosecutor ran on issues of affordability and economic issues, and he told a crowd he'll be working to make the people of Mississippi live better. I make a solemn commitment to each and every Mississippian today. In every decision I make, I will never forget. The most important thing is Mississippi matters. God bless y'all. While this Now, Republican Cindy Hyde-Smith conceded last night, saying she wishes Scott Colvin well in representing the state. Democratic Party leaders celebrating his victory as Southern states deliver Democratic victories from the Carolinas to Georgia and to Texas. Colvin's win gives Democrats 55 seats in the U.S. Senate. The one race that hasn't been called yet is the Senate seat in Alaska. Democrat Mary Peltola currently leading in that race. In the House of Representatives, Democrats are now projected to have at least 255 seats. Republicans have 168. In the North Bay, the race for District 4 remains too close to call. Incumbent Democrat Congressman Mike Thompson is facing a challenge from fellow Democrat Eric Jones. Jones is currently leading with 52% of the vote. District 4 includes Napa, Sonoma, Santa Rosa, and Davis. Our time's now six.