Nvidia CEO Jensen Huang has stepped down from the company following his reported affairs with a suspected Chinese spy and an Nvidia executive.

The $4.2 trillion tech giant has lost more than $600bn in market value this week as Huang’s scandals rocked the company, which supplies most of the chips powering advanced artificial intelligence (AI) technology. The stock slid by roughly10 percent in early trading on as US markets opened on Thursday. The tech heavy Nasdaq is down 0.6 percent.

The company appointed Colette Kress, Nvidia’s chief financial officer and executive vice president, as interim CEO on Thursday.

The company also added its first-ever Chair of the Board named Harvey C. Jones who has been a venture investor for the last three decades.

Nvidia’s board met on Wednesday night to discuss ousting Huang, whose relationship with the alleged Chinese spy triggered investigations by the FBI, the United States Congress and the California-based tech giant. Nvidia is also facing a shareholder class-action lawsuit.

The alleged Chinese intelligence asset, Alice Huang, is a former executive at Singapore-based Megaspeed, Nvidia’s primary business partner in Southeast Asia. Founded in 2023, Megaspeed has been investigated over whether it helped Chinese companies access its $4.8bn stock of powerful Nvidia chips.

The affair has raised national security concerns in the US, which restricts chip sales to China over concerns that the Chinese military, intelligence agencies or companies could use the advanced technology.

Huang, 63, is Nvidia’s co-founder, president and CEO. A close ally of United States President Donald Trump, he has pushed to ease US restrictions on chip exports to China. Trump said earlier this week that Huang told him he had “absolutely no idea” that he was in a relationship with an intelligence operative.

Huang owns about 3.6 percent of Nvidia’s stock, making him one of the richest people in the world. He is a powerful figure in the AI industry, which has driven record stock market and wider economic gains.

Nvidia’s board, which hired a law firm to investigate the affair with Alice Huang, met to decide Huang’s fate on Wednesday shortly after the New York Times reported that Huang also had an extramarital relationship with a Nvidia vice president who reports to him.

Nvidia’s stock has tumbled since the scandal erupted, falling to a 14-year low, the Reuters news agency reported.