How did Nvidia stock handle CEO shock?

NVIDIA shares rose: After it was announced that Jensen Huang was leaving his post as CEO, the stock rose from the bottom of $ 151 in pre-market transactions to the range of $ 163-166 at the Nasdaq opening. Huang is replaced by CFO Colette Kress.

NVIDIA shares rise, week was turbulent

The week has been quite turbulent for NVIDIA. First, Huang's confession of having an illicit relationship came to the fore. A second claim emerged yesterday and shook the company.

The stock lost $15 in value between Friday night and Monday morning. It peaked at $181 by the end of Monday, but fell back to $167 on Tuesday. Today, it dropped to $151 before the market and recovered at the opening.

In the financial world, a short-term recovery of a stock in a downtrend is called a "dead cat bounce". The stock market is volatile by nature. Still, NVIDIA remains a successful company worth trillions of dollars.

Head of the company since 1993

Co-founder Huang had been president and CEO of NVIDIA since 1993. He played a key role in making the company the most valuable company in the world for a time.

Reactions from the industry

Many leading names in the technology world expressed their sadness about the separation this morning. For example, Epic Games founder Tim Sweeney, Hugging Face co-founder Clement Delangue, and CNBC host Jim Cramer reacted to the situation:

"This is a sad day for NVIDIA, developers, America, and all of humanity," said Tim Sweeney (Epic Games founder and CEO).

Clement Delangue (Co-founder and CEO of Hugging Face): "This whole thing sucks and I wish it had never happened. It's a really sad day."

Jim Cramer (CNBC Mad Money host): "Jensen, we barely recognize you. Just awful..." commented.