With Nvidia, the most serious issue isn’t the gossip—it’s the person.
On Sunday, Jensen Huang sent a letter to all employees, personally admitting he had been unfaithful to his wife and apologizing to his family, employees, and shareholders. That same day, the board launched an independent investigation into whether he had become a target of foreign intelligence activity, with outside counsel following up. The board also stated that there is currently no reason to believe national security or company secrets have been compromised, and that Huang will remain CEO and fully cooperate.
First, keep two things separate: He admitted to the affair; no one has admitted to leaking information, and there’s no evidence of a leak. A late-October New York Times report said the woman was Alice Huang, a former senior executive at Singapore’s Megaspeed. U.S. officials suspect she passed information to Beijing, and the company reportedly bought more than $4.8 billion worth of Nvidia equipment. Put simply, the board is investigating whether he was “targeted,” not whether he “leaked secrets.” Don’t conflate the two.
But for shareholders, the real risk isn’t the gossip. It’s the idea that “one person is the company.” Nvidia is worth nearly $5 trillion, and it has just one central figure. Shares closed at $186.64 on Friday, down 8.8% last week and 18.6% over the past month, essentially wiping out this year’s gains. The stock was already teetering on a cliff, and now an investigation is hanging over it. The November 17 earnings report and a closed-door congressional briefing on the 18th are coming one after another.
He admitted his mistake. Whether the stock accepts that is another matter—it will depend on what the investigation and earnings report reveal.
#JensenHuangApologizesForAffairNvidiaLaunchesIndependentInvestigation
$NVDA
On Sunday, Jensen Huang sent a letter to all employees, personally admitting he had been unfaithful to his wife and apologizing to his family, employees, and shareholders. That same day, the board launched an independent investigation into whether he had become a target of foreign intelligence activity, with outside counsel following up. The board also stated that there is currently no reason to believe national security or company secrets have been compromised, and that Huang will remain CEO and fully cooperate.
First, keep two things separate: He admitted to the affair; no one has admitted to leaking information, and there’s no evidence of a leak. A late-October New York Times report said the woman was Alice Huang, a former senior executive at Singapore’s Megaspeed. U.S. officials suspect she passed information to Beijing, and the company reportedly bought more than $4.8 billion worth of Nvidia equipment. Put simply, the board is investigating whether he was “targeted,” not whether he “leaked secrets.” Don’t conflate the two.
But for shareholders, the real risk isn’t the gossip. It’s the idea that “one person is the company.” Nvidia is worth nearly $5 trillion, and it has just one central figure. Shares closed at $186.64 on Friday, down 8.8% last week and 18.6% over the past month, essentially wiping out this year’s gains. The stock was already teetering on a cliff, and now an investigation is hanging over it. The November 17 earnings report and a closed-door congressional briefing on the 18th are coming one after another.
He admitted his mistake. Whether the stock accepts that is another matter—it will depend on what the investigation and earnings report reveal.
#JensenHuangApologizesForAffairNvidiaLaunchesIndependentInvestigation
$NVDA
