What smart people in business and tech are saying about the Nvidia board potentially ousting Jensen Huang

• Nvidia stock fell 8% following a Wall Street Journal report that the company's board plans to oust CEO Jensen Huang.
• The New York Times reported on Wednesday that Huang had a second extramarital affair, this time with an Nvidia employee.
• This is what smart people in business and tech are saying about Huang's potential exit from Nvidia.

Speculation over what Nvidia's future could look like without its high-profile chief executive ramped up on Wednesday.

The chipmaker's stock fell 8% in after-hours trading Wednesday after The Wall Street Journal reported that its board was preparing to remove CEO Jensen Huang.

The New York Times also reported Wednesday that Huang had an affair with an Nvidia executive who reported to him, citing five people who worked at the company.

The report came days after Huang said in a memo to employees that he had an extramarital affair, and after Nvidia's board launched an investigation into whether Huang had been targeted by a foreign intelligence operation. The New York Times previously reported US officials believed Huang had grown close to a tech executive, Alice Huang, who had been recruited to gather information for the Chinese government.

As the chip giant's succession plans remain unknown, here is what smart people in business and tech are saying about Huang's potential exit from Nvidia.

Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management

Ross Gerber said Huang's departure would be a disappointment for Nvidia shareholders but said the company could move forward without him.

"Looks like Jensen is done. What a disappointment. Sad day for Nvidia shareholders and looks like another tough day for the stock. Never would have guessed he'd go down this way," Gerber wrote in one of several posts on X on Wednesday.

"Jensen will be replaced and Nvidia is still Nvidia. That's business. He must go and Nvidia needs to focus on selling chips!" Gerber added.

Eric Wallerstein, chief macro strategist at Clocktower Group

Eric Wallerstein wrote on X on Wednesday that Huang's likely ousting could shake investor confidence in the broader AI trade, given Nvidia's role in financing the industry.

"Jensen has helped foster a complex web of circular financing relationships, and ultimately backstopped the AI trade, with Nvidia's balance sheet," Wallerstein said.

"Removing that Put, or even placing uncertainty on its availability, will cause investors to increase the risk premium on AI-related assets," Wallerstein added

Ed Zitron, CEO of EZ Primary Research

Ed Zitron said in a post on X that he questions what else Nvidia might be withholding from investors, pointing to the company's past regulatory troubles.

"Oh so NVIDIA knew about this affair already, huh? What else is this company not telling us?" Zitron wrote on Wednesday.

Zitron also cited two previous SEC cases involving Nvidia, one in 2002 over accounting practices and one in 2022 over disclosures related to cryptocurrency mining and gaming revenue.

Jason Calacanis, co-host and executive producer of the All-In Podcast

Jason Calacanis said the company shouldn't be so quick to remove Huang.

"A much better solution for NVIDIA's board, shareholders, customers and employees (and America) would be to (a) finish their investigation and (b) make @JensenHuang the chairman if it comes to that," Calacanis wrote on X on Wednesday.

"China doesn't need NVIDIA's chips. America needs NVIDIA to win. Act accordingly," Calacanis added, alongside a screenshot of his new Nvidia share purchases.

Keith Urbahn, president of Javelin

Keith Urbahn, president of Javelin, a literary and creative agency that has repped prominent figures like James Comey and Tucker Carlson, said Wednesday in an X post that the situation was "a generational case study in how not to manage a crisis."

He outlined several lessons to take away from the ordeal, including: "Never let a CEO's personal crisis take precedence over the interests of the company and its shareholders."

"The board must speak with its own voice. It cannot outsource its institutional credibility to the CEO," he added.

Byrne Hobart, venture capitalist and founder of The Diff

Byrne Hobart, general partner at Anomaly Fund and founder of The Diff, a finance and tech newsletter, suggested ousting Huang could lead to new competition for Nvidia.

"On one hand, boards have to do what they have to do. On the other hand, he's a guy who's worth $150bn, knows everyone in hardware, named his company after the Latin word for "spite," and he lives in a state where you can't enforce noncompetes," he wrote in a post on X.

Anthony Pompliano, crypto investor and entrepreneur

Anthony Pompliano, a crypto investor and entrepreneur, wrote on X: "Jensen's yet-to-be-launched Nvidia competitor is going to do numbers in the seed round."

Gene Munster, managing partner at Deepwater Asset Management

Gene Munster, a tech analyst and managing partner at Deepwater Asset Management, said in an X post that Nvidia will go on, with or without its famous CEO.

"Remember: AI infrastructure customers will act in their best interest," he said. "That means they'll keep buying just as many $NVDA chips with or without Jensen."

He also said he guesses the stock will open on Thursday at $150, or about 20% lower than the close at the end of last week, but that he expects it to "quickly rally back."

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