#Report: Jensen Huang allegedly had an affair with a senior executive who reported to him# #Jensen Huang may be ousted by shareholders#
Well, this scandal involving Huang just sent Nvidia shares tumbling. On the surface, it’s an affair scandal, but what really spooked the market is that the board may actually be preparing to oust him.
The scandal is just the spark. The key allegation is that Huang had more than one affair, and one of the women was a senior executive who reported directly to him. Then the Wall Street Journal reported that the board was preparing to meet to decide his future—and had even begun looking for an interim CEO. Huang is so closely tied to Nvidia that if he really gets pushed out, its supply-chain relationships and customer trust would all have to be rebuilt from scratch. That’s more damaging than any scandal.
Wall Street was quickest to react. Baird downgraded the stock to “Neutral,” slashing its price target in half, from $500 to $200, for one reason: the CEO may be replaced. Morgan Stanley also swiftly dropped Nvidia from its “Top Picks” list. So that 9% plunge wasn’t about gossip; it was a collective panic over how much Nvidia is worth without Huang. Capital markets aren’t afraid of a boss having an affair—they’re afraid the boss might suddenly be forced out.
$NVDAB
Well, this scandal involving Huang just sent Nvidia shares tumbling. On the surface, it’s an affair scandal, but what really spooked the market is that the board may actually be preparing to oust him.
The scandal is just the spark. The key allegation is that Huang had more than one affair, and one of the women was a senior executive who reported directly to him. Then the Wall Street Journal reported that the board was preparing to meet to decide his future—and had even begun looking for an interim CEO. Huang is so closely tied to Nvidia that if he really gets pushed out, its supply-chain relationships and customer trust would all have to be rebuilt from scratch. That’s more damaging than any scandal.
Wall Street was quickest to react. Baird downgraded the stock to “Neutral,” slashing its price target in half, from $500 to $200, for one reason: the CEO may be replaced. Morgan Stanley also swiftly dropped Nvidia from its “Top Picks” list. So that 9% plunge wasn’t about gossip; it was a collective panic over how much Nvidia is worth without Huang. Capital markets aren’t afraid of a boss having an affair—they’re afraid the boss might suddenly be forced out.
$NVDAB