Duan Yongping made the following remarks today about Jensen Huang’s resignation: It won’t affect NVIDIA’s business in the short term. What happens over the next 3 to 5 years depends on whether the company can find an excellent CEO. This aligns with A Jian’s view last night that the focus should now be on earnings reports and the choice of a permanent CEO. The market’s current reaction, however, reflects a completely different way of thinking:
Duan Yongping’s framework is business-focused: NVIDIA’s business is chips, CUDA, and its supply chain. None of these will stop just because the company gets a new CEO. In the short term, the business really won’t run into problems right away.
The market’s framework is valuation-focused: A large part of NVIDIA’s valuation consists of the Jensen Huang premium. He’s gone, so that premium is gone. Its forward P/E has already fallen to about 12, the lowest since 2012, which shows that the market is repricing NVIDIA without Jensen Huang.
In the short term, Duan Yongping is right: the business won’t collapse overnight.
In the long term, the market is also right: the valuation needs to be recalculated.
Finally, A Jian still believes that the NVIDIA board’s top priority right now is to stabilize the situation and address governance issues, not to continue the strategy. So I’ll be watching the board’s next moves closely before November 17.
That’s all. DYOR#黄仁勋辞任CEO，英伟达战略走向受关注
Duan Yongping’s framework is business-focused: NVIDIA’s business is chips, CUDA, and its supply chain. None of these will stop just because the company gets a new CEO. In the short term, the business really won’t run into problems right away.
The market’s framework is valuation-focused: A large part of NVIDIA’s valuation consists of the Jensen Huang premium. He’s gone, so that premium is gone. Its forward P/E has already fallen to about 12, the lowest since 2012, which shows that the market is repricing NVIDIA without Jensen Huang.
In the short term, Duan Yongping is right: the business won’t collapse overnight.
In the long term, the market is also right: the valuation needs to be recalculated.
Finally, A Jian still believes that the NVIDIA board’s top priority right now is to stabilize the situation and address governance issues, not to continue the strategy. So I’ll be watching the board’s next moves closely before November 17.
That’s all. DYOR#黄仁勋辞任CEO，英伟达战略走向受关注