Nvidia interim chief executive Colette Kress has told employees they will hear more about the company’s future next week, as the chipmaker attempts to steady itself following Jensen Huang’s resignation.
In an internal email obtained by CNBC, Colette Kress acknowledged an “extraordinarily difficult period” and announced a company-wide meeting for 18 November.
The gathering will follow Nvidia’s quarterly earnings announcement by one day.
Shares closed Thursday down 4.34% at $166.19 after touching $148.80, as investors questioned whether the company can preserve its technological lead without the founder who ran it for 33 years.
Kress promises answers after Huang’s departure
Colette Kress, Nvidia’s finance chief since 2013, thanked staff for their resilience and professionalism, and pledged further communication in the coming days.
She urged employees to focus on serving customers and the work ahead, but offered no new strategy or changes to product plans.
Harvey Jones, appointed board chair, separately told employees that directors had confidence in Colette Kress.
Nvidia has begun searching for a permanent chief executive, considering both internal and external candidates. Colette Kress will remain chief financial officer while serving as interim CEO.
Jones said existing customer commitments and the product roadmap were 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 of Colette Kress. He described her as a disciplined leader familiar with Nvidia’s operations and investors, arguing that she could bring order during the transition.
A strong business faces a valuation problem
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. The shares fell more than 14% at their intraday low before recovering some losses, and remain well below their $204.64 close on 30 October.
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 Nvidia fair value estimate 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.
Nvidia earnings and employee meeting offer two tests
Nvidia will report fiscal third-quarter results on 17 November. 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 she 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 reorganise 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 Colette Kress could supply the long-term technological vision Nvidia needs.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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