From Business Insider · Katherine Li · · 3m
Nvidia board moves to oust Jensen Huang as CEO
The chipmaker's stock fell 8% after reports of an investigation into the founder's affair with an executive, prompting sharp reactions from tech leaders.
In brief
The chipmaker's stock fell 8% after reports of an investigation into the founder's affair with an executive, prompting sharp reactions from tech leaders. Nvidia's board is preparing to remove CEO Jensen Huang following reports of an affair with an executive and a foreign intelligence investigation, sending the stock…
Nvidia board prepares to remove Huang
The Wall Street Journal reported Wednesday that Nvidia's board was preparing to remove CEO Jensen Huang. The chipmaker's stock fell eight percent in after-hours trading.
Huang had affair with executive
The New York Times reported Wednesday that Huang had an affair with an Nvidia executive who reported to him, citing five people who worked at the company.
Huang admitted extramarital affair
Huang said in a memo to employees that he had an extramarital affair. The admission came as Nvidia's board launched an investigation into whether Huang had been targeted by a foreign intelligence operation.
US officials concerned about Chinese recruitment
The New York Times previously reported US officials believed Huang had grown close to a tech executive, Alice Huang, who had been recruited to gather information for the Chinese government.
Gerber: Huang must go, Nvidia survives
Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, said Huang's departure would disappoint shareholders but the company could move forward. He wrote: Jensen will be replaced and Nvidia is still Nvidia.
“Jensen will be replaced and Nvidia is still Nvidia.”
Wallerstein: Removal threatens AI financing
Eric Wallerstein, chief macro strategist at Clocktower Group, said Huang's ouster could shake investor confidence in the AI trade. Huang has backstopped the AI trade with Nvidia's balance sheet through complex financing relationships.
Calacanis: Make Huang chairman instead
Jason Calacanis, co-host of the All-In Podcast, said the board should finish its investigation and make Huang chairman if needed. He wrote: China doesn't need Nvidia's chips. America needs Nvidia to win.
“China doesn't need NVIDIA's chips. America needs NVIDIA to win.”
Hobart: Huang could launch rival chipmaker
Byrne Hobart, venture capitalist and founder of The Diff, suggested ousting Huang could lead to new competition for Nvidia.
Munster: Customers will keep buying chips
Gene Munster, managing partner at Deepwater Asset Management, said Nvidia will go on with or without Huang. AI infrastructure customers will act in their best interest and keep buying Nvidia chips regardless of leadership changes.
Cramer questions Nvidia's value without Huang
Jim Cramer, host of CNBC's Mad Money, questioned how investors should value Nvidia if Huang were suddenly gone. He asked: What is it worth when a key man is just erased?
“What is it worth when a key man is just erased?”
What to remember
Nvidia's board is preparing to remove CEO Jensen Huang following reports of an affair with an executive and a foreign intelligence investigation, sending the stock down eight percent.
