Why smart people in business and tech are saying Nvidia board potentially ousting Jensen Huang matters

Reports fuel uncertainty

The New York Times reported Wednesday, citing five former Nvidia employees, that Huang had an affair with an executive who reported to him. Days earlier, Huang told employees in a memo that he had an extramarital affair.

Nvidia’s board also launched an investigation into whether a foreign intelligence operation had targeted Huang. The Times had previously reported that US officials believed he had grown close to Alice Huang, a tech executive recruited to gather information for the Chinese government.

Investors weigh Nvidia’s future

Ross Gerber said Huang’s departure would disappoint Nvidia shareholders but that the company could carry on without him. Eric Wallerstein warned on X that a likely ousting could unsettle confidence in the broader AI trade, given Nvidia’s role in financing the industry.

Gene Munster said Nvidia would continue with or without its well-known CEO. He estimated the stock might open Thursday at $150, about 20% below its close at the end of the previous week, before quickly recovering.

Questions over board response

Ed Zitron questioned whether Nvidia was withholding other information from investors and pointed to two earlier SEC cases: a 2002 case involving accounting practices and a 2022 case about disclosures tied to cryptocurrency mining and gaming revenue. Keith Urbahn called the situation a major example of crisis mismanagement and said the board should speak for itself rather than rely on the CEO for its institutional credibility. Jason Calacanis argued against removing Huang quickly, while Jim Cramer questioned how investors should value Nvidia if Huang suddenly left.