• Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be removed, according to two people familiar with the matter, amid growing criticism from lawmakers over delayed blacklisting of Chinese companies and the administration's oversight of Nvidia (NASDAQ:NVDA) ($NVDA) chip exports to China; a White House official says President Trump maintains "complete confidence" in Lutnick, and no decision to remove him has been announced.
  • Nvidia CEO Jensen Huang resigned Thursday; CFO Colette Kress was named interim CEO, and the board appointed Harvey C. Jones chairman.
  • Senators Elizabeth Warren and Chris Coons are seeking records from Commerce, State, and the White House on Nvidia-related export controls.

White House Weighs Lutnick's Future

Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be removed, according to two people familiar with the matter. Lutnick faces growing criticism from lawmakers over delayed blacklisting of Chinese companies and the administration's oversight of Nvidia ($NVDA) chip exports to China. The scrutiny has intensified following Jensen Huang's resignation amid allegations involving a suspected Chinese intelligence operative. A White House official says President Trump maintains "complete confidence" in Lutnick. No decision to remove him has been announced. The internal deliberations come as Lutnick faces scrutiny over the Commerce Department's handling of export restrictions related to Nvidia. The backing follows allegations that Commerce delayed placing Singapore-based Nvidia customer Megaspeed on the Entity List, despite suspicions that the company helped divert advanced AI chips to China. Megaspeed denies any wrongdoing.

The dispute over export controls has reportedly caused friction within the administration. Treasury Secretary Scott Bessent confronted Lutnick last week over Commerce's reluctance to act against Megaspeed, CNN reported. Axios reported that Trump had approved action against suspected chip-diversion companies on three occasions—in May, August, and November 5—but Lutnick and Commerce officials resisted implementation. Commerce disputed the reported Bessent-Lutnick confrontation, according to The New York Times (NYSE:NYT). These accounts rely substantially on unnamed officials.

Lutnick has reportedly warned that additional restrictions could trigger a trade war, reflecting competing priorities within the administration as officials weigh national security concerns against economic and diplomatic considerations. The White House did not respond to requests for comment.

Nvidia's Leadership Shakeup

Separately, Nvidia announced a major leadership change on Thursday. CEO Jensen Huang resigned, and CFO Colette Kress was named interim CEO, according to reports from AP and CNBC. The board also appointed Harvey C. Jones as chairman. The move follows reports that the board was considering Huang's future, and shares fell about 10% in Thursday's premarket trading. CNN separately reported an 8.6% after-hours decline Wednesday evening as the board deliberated.

The leadership transition comes as Nvidia remains central to the AI infrastructure buildout, with a market value exceeding $4 trillion before Thursday's market reaction. In its most recent quarter, Nvidia reported revenue of $96.2 billion for fiscal Q2 2027, up 106% year over year, with data center revenue of $89.0 billion. Full-year fiscal 2026 revenue was $215.9 billion, up 65%.

Congressional Scrutiny Intensifies

Senators Elizabeth Warren and Chris Coons have asked the Commerce, State, and White House to preserve Nvidia-related records and explain whether officials knew of the alleged intelligence operation but failed to act. The request escalates congressional oversight of export controls and the administration's enforcement of restrictions on advanced chip sales to China.

The controversy also complicates diplomacy ahead of next week's APEC summit in Shenzhen, which Trump is expected to attend. China's foreign ministry dismissed the espionage allegations as "groundless speculation." Nvidia's board initially said it had no reason to believe company secrets or national security had been compromised and commissioned an independent investigation.

Market and Industry Implications

Nvidia's leadership uncertainty has ripple effects across the AI sector. Competitors AMD (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) saw gains Wednesday evening as investors considered whether a less founder-driven Nvidia could become easier to compete against. Nvidia's Taiwan suppliers and its planned Taipei headquarters remain on track, according to local officials, but the company's China access remains policy-sensitive: its fiscal Q1 2027 outlook assumed no China data center compute revenue.

The immediate corporate issue is governance and succession, not a broader operational breakup. Analysts have noted that while Huang's departure is a major disruption, Nvidia's leading GPU technology and entrenched AI role may endure. Dan Ives of Wedbush told CNN that Nvidia's technology leadership would help it navigate the transition, while JonesTrading strategist Mike O'Rourke warned that a successor could face less latitude in dealmaking and sales practices.

The coming days will be critical: whether Commerce formally restricts Megaspeed or other intermediaries, what Nvidia's internal investigation finds, and how Kress stabilizes management will shape investor confidence. For now, Trump's support may protect Lutnick politically, but it does not resolve the underlying enforcement dispute or Nvidia's leadership questions.