Woken up early by a call from a friend, I saw breaking news about Nvidia: foreign media are reporting that Jensen Huang is embroiled in a workplace controversy and that the board is preparing to remove him. Nvidia plunged 8% after hours—I imagine he’s a little worried.
The market is currently trading on a classic key-person risk. Nvidia’s brand, customer relationships, and CUDA ecosystem have long been closely tied to Huang, so investors instinctively fear that an abrupt change in leadership could cause strategic turmoil.
But from another perspective, the corporate governance systems of mature U.S. publicly traded companies are relatively well developed. Even if this kind of upheaval at the top occurs, the chances of a smooth transition are not low.
Personally, I feel deeply grateful to Huang. In the four years since the end of 2022, Nvidia has been our most rewarding investment, and we have always appreciated his down-to-earth manner.
I still believe artificial intelligence is a bull market that will last at least ten years. This incident is merely a disruption, a brief episode in a long-running trend. I don’t want to see Mr. Huang removed; the AI era could well lose one of its most important leading figures. Objectively speaking, as Nvidia plunged, its long-suppressed rival AMD rose in response.
AI is the defining theme of our era. The tide is surging forward, unstoppable.
Of course, a smooth transition doesn’t mean there won’t be growing pains. Valuations and market sentiment will inevitably fluctuate in the short term. We should consider personal-conduct controversies and personnel rumors separately from demand for AI computing power, barriers to entry in chips, and the strength of the ecosystem. Going forward, the key things to watch are the board’s findings, succession plans, and whether order deliveries undergo any material changes. The news is a disturbance; the industry’s long-term fundamentals are the anchor for our investment.
The market is currently trading on a classic key-person risk. Nvidia’s brand, customer relationships, and CUDA ecosystem have long been closely tied to Huang, so investors instinctively fear that an abrupt change in leadership could cause strategic turmoil.
But from another perspective, the corporate governance systems of mature U.S. publicly traded companies are relatively well developed. Even if this kind of upheaval at the top occurs, the chances of a smooth transition are not low.
Personally, I feel deeply grateful to Huang. In the four years since the end of 2022, Nvidia has been our most rewarding investment, and we have always appreciated his down-to-earth manner.
I still believe artificial intelligence is a bull market that will last at least ten years. This incident is merely a disruption, a brief episode in a long-running trend. I don’t want to see Mr. Huang removed; the AI era could well lose one of its most important leading figures. Objectively speaking, as Nvidia plunged, its long-suppressed rival AMD rose in response.
AI is the defining theme of our era. The tide is surging forward, unstoppable.
Of course, a smooth transition doesn’t mean there won’t be growing pains. Valuations and market sentiment will inevitably fluctuate in the short term. We should consider personal-conduct controversies and personnel rumors separately from demand for AI computing power, barriers to entry in chips, and the strength of the ecosystem. Going forward, the key things to watch are the board’s findings, succession plans, and whether order deliveries undergo any material changes. The news is a disturbance; the industry’s long-term fundamentals are the anchor for our investment.
