In the latest Jensen Huang controversy, what the market should really focus on isn’t the gossip, but Nvidia’s “succession problem.”
Reports say Nvidia’s board announced on Nov. 8 that it was launching an investigation. Huang went to the office and held meetings as usual on Monday, opening with an apology to employees before turning back to business. But insiders say morale at the company remains low.
The problem is that this $4.3 trillion company is almost entirely propped up by one person: more than 60 people report directly to him, there is no “number two,” no chairperson, and no public succession plan. Three independent directors on the board have also served for more than 25 years, and the board’s oversight has long been questioned.
Fortunately, $NVDA shares have rebounded by about 5%, suggesting that for now, the market is more focused on the business. Next week’s earnings report will be the real test: if the results are strong enough, governance concerns may fade into the background; if the investigation reveals more than just personal matters, the impact will be another story.
Nvidia is a bellwether for the AI sector, and its earnings will also affect overall risk appetite through the Nasdaq. The crypto market is worth keeping an eye on, too 👀
Note: Much of the above is based on accounts from “people familiar with the matter.” Nvidia has yet to respond, and the official investigation findings should be considered definitive.
#英伟达 #NVDA #AI #USStocks
Reports say Nvidia’s board announced on Nov. 8 that it was launching an investigation. Huang went to the office and held meetings as usual on Monday, opening with an apology to employees before turning back to business. But insiders say morale at the company remains low.
The problem is that this $4.3 trillion company is almost entirely propped up by one person: more than 60 people report directly to him, there is no “number two,” no chairperson, and no public succession plan. Three independent directors on the board have also served for more than 25 years, and the board’s oversight has long been questioned.
Fortunately, $NVDA shares have rebounded by about 5%, suggesting that for now, the market is more focused on the business. Next week’s earnings report will be the real test: if the results are strong enough, governance concerns may fade into the background; if the investigation reveals more than just personal matters, the impact will be another story.
Nvidia is a bellwether for the AI sector, and its earnings will also affect overall risk appetite through the Nasdaq. The crypto market is worth keeping an eye on, too 👀
Note: Much of the above is based on accounts from “people familiar with the matter.” Nvidia has yet to respond, and the official investigation findings should be considered definitive.
#英伟达 #NVDA #AI #USStocks
