Mi Ge will start with something counterintuitive: if Jensen Huang really steps down today, Nvidia could actually be poised to rise.
The board announced it this morning: Huang has resigned as president, CEO, and board member, effective immediately, ending his 33-year tenure at the helm. CFO Colette Kress has been named interim CEO, and the board has begun a formal search for a permanent CEO, considering both internal and external candidates. Harvey Jones, former CEO of Synopsys, has become the company’s first-ever board chair. The announcement gave no reason, but we all know what’s happened over the past few days: on Sunday, Huang admitted to an extramarital affair and the board launched an independent investigation; on Wednesday, The New York Times revealed a second affair; the board met that evening, and this morning the announcement came straight out.
The stock’s first reaction was to plunge: it closed at $173.73 on Wednesday, fell more than 10% at one point in premarket trading, and hit $148.80 intraday today, a 52-week low. It has since recovered to around $164. From its October high, it’s now down more than 20%.
But Mi Ge’s bullish case comes down to three points. First, the sword hanging over the company has fallen. The stock’s decline over the past few days reflected uncertainty about whether he would leave. Now he’s gone, there’s an interim CEO in place, and the search is underway—so there’s actually less uncertainty. Second, the business hasn’t changed at all. Q3 results are due November 17, with revenue expected to reach $109.2 billion, up 91.5% year over year. Data centers remain the biggest driver, and Vera Rubin accounts for 20% of data center revenue. The chips are still the same chips. Third, Kress has been CFO since 2013 and has managed the company’s finances for 13 years, so the transition won’t leave a gap.
Mi Ge’s view in one sentence: this sell-off is about the person, not the business. At $164, the bet is that earnings night will turn sentiment around. What do you think? With Huang gone, is Nvidia a buying opportunity, or should we wait for the November 17 earnings report?
#黄仁勋辞任CEO，英伟达战略走向受关注
The board announced it this morning: Huang has resigned as president, CEO, and board member, effective immediately, ending his 33-year tenure at the helm. CFO Colette Kress has been named interim CEO, and the board has begun a formal search for a permanent CEO, considering both internal and external candidates. Harvey Jones, former CEO of Synopsys, has become the company’s first-ever board chair. The announcement gave no reason, but we all know what’s happened over the past few days: on Sunday, Huang admitted to an extramarital affair and the board launched an independent investigation; on Wednesday, The New York Times revealed a second affair; the board met that evening, and this morning the announcement came straight out.
The stock’s first reaction was to plunge: it closed at $173.73 on Wednesday, fell more than 10% at one point in premarket trading, and hit $148.80 intraday today, a 52-week low. It has since recovered to around $164. From its October high, it’s now down more than 20%.
But Mi Ge’s bullish case comes down to three points. First, the sword hanging over the company has fallen. The stock’s decline over the past few days reflected uncertainty about whether he would leave. Now he’s gone, there’s an interim CEO in place, and the search is underway—so there’s actually less uncertainty. Second, the business hasn’t changed at all. Q3 results are due November 17, with revenue expected to reach $109.2 billion, up 91.5% year over year. Data centers remain the biggest driver, and Vera Rubin accounts for 20% of data center revenue. The chips are still the same chips. Third, Kress has been CFO since 2013 and has managed the company’s finances for 13 years, so the transition won’t leave a gap.
Mi Ge’s view in one sentence: this sell-off is about the person, not the business. At $164, the bet is that earnings night will turn sentiment around. What do you think? With Huang gone, is Nvidia a buying opportunity, or should we wait for the November 17 earnings report?
#黄仁勋辞任CEO，英伟达战略走向受关注