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Nvidia stock tries to recover from Jensen Huang resignation sell-off

Jensen Huang stepped down as Nvidia CEO following reports of a relationship with an executive and ongoing scrutiny over a separate probe.

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Nvidia shares attempted a rebound Friday after CEO Jensen Huang resigned following reports of a relationship with a company vice president and a separate board investigation into a relationship with a woman tied to Chinese intelligence.

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Jensen Huang resigned as CEO of Nvidia after reports of a relationship with Kimberly Powell and ongoing board scrutiny.

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Nvidia stock tried to rebound on Friday as investors navigated the fallout from Jensen Huang's resignation.

Huang resigned as CEO of Nvidia on Thursday after The New York Times reported that Huang had a romantic relationship with Kimberly Powell, vice president of health care at Nvidia. Following Huang's departure, shares of Nvidia declined sharply Thursday morning before recovering to close just 4% lower.

Huang was already under scrutiny following an investigation by the board into his relationship with a businesswoman who intelligence agencies say is a Chinese spy.

Reuters reported on Thursday the existence of another affair with an Nvidia employee, which the news agency did not name. Nvidia did not immediately respond to CNBC's request for comment.

Before Huang resigned, several Wall Street analysts told CNBC that his departure could cost Nvidia as much as 20% of its market value, given how critical he has been to the company's success. Nvidia's stock is already down more than 20% over the last month.

A lot of the company's success has been built around Huang, said Stephane Houri, head of equity research at ODDO BHF.

It's about more than just Nvidia, but also about the "architecture of the AI industry that really depended on the vision" and expertise of Huang, Houri told CNBC's "Squawk Box Europe" on Friday.