To The Moon

For more than 30 years, Jensen Huang has been the face, voice and driving force behind Nvidia’s transformation from a graphics-chip manufacturer into the world’s leading AI computing powerhouse.

Now, that era has suddenly come to an end.

On November 12, $NVIDIA(NVDA)$  officially announced that Jensen Huang had resigned as President, CEO and a member of the board, effective immediately. CFO Colette Kress has taken over as interim CEO, while Harvey C. Jones has been appointed chairman of the board.

The announcement followed a period of intense scrutiny and an independent board investigation.

Nvidia shares initially plunged as much as 14% during the trading session before recovering some losses and closing down approximately 4%.

This raises a much bigger question for investors: Are we looking at a temporary leadership shock, or has Nvidia’s long-term investment story fundamentally changed?

1. Jensen Huang was more than just a CEO

One reason this announcement matters so much is that Jensen Huang was closely connected to Nvidia’s competitive advantage.

He was not simply managing the business. He helped shape its technology roadmap, developed relationships with major customers and positioned Nvidia at the centre of the AI revolution.

His vision helped Nvidia move beyond selling GPUs into building a complete AI computing ecosystem.

That ecosystem includes:

• Advanced GPUs and AI accelerators.

• CUDA software and developer tools.

• Networking and high-speed interconnects.

• Complete AI server and data-centre systems.

This creates a competitive advantage that is difficult for rivals to replicate.

The concern is whether the next leadership team can maintain the same strategic direction and execution speed without the founder.

2. Can Colette Kress maintain investor confidence?

Colette Kress is not an outsider. She has served as Nvidia’s CFO since 2013 and understands the company’s financial position, customers and business operations.

Her appointment could provide continuity during an uncertain period.

However, there is a difference between managing Nvidia’s finances and replacing a founder who has been responsible for its technology vision and industry relationships for more than three decades.

The board must eventually demonstrate that Nvidia’s leadership succession is stable and that its product roadmap will continue without disruption.

Until a permanent CEO is appointed, uncertainty could remain a source of volatility.

3. Has Nvidia’s AI investment thesis changed?

This is probably the most important question for long-term investors.

My view is that Nvidia’s fundamental business opportunity has not suddenly disappeared.

Demand for AI computing, data-centre infrastructure and advanced chips remains a major long-term growth opportunity.

Microsoft, Amazon, Google and Meta are still investing heavily in AI infrastructure.

Nvidia also has an established software ecosystem that makes switching to competing platforms more complicated.

However, three risks deserve closer attention:

Leadership risk: A new CEO may have a different management style, strategic priorities and ability to maintain relationships with major customers.

Competitive risk: AMD and custom AI chips developed by major cloud companies could gradually challenge Nvidia’s market dominance.

Valuation risk: Nvidia has historically benefited from strong investor confidence in its founder and future growth. A leadership transition could reduce the valuation premium investors are willing to pay, even if earnings remain strong.

In other words, a good business can still become a less attractive investment if its valuation is too high.

4. What should investors watch next?

I would focus on three developments rather than trying to predict the share price based on the resignation alone.

First, watch whether Nvidia appoints a permanent CEO with strong technical and strategic experience.

Second, monitor whether major customers maintain their AI infrastructure spending and continue prioritising Nvidia’s platforms.

Third, pay close attention to Nvidia’s upcoming November 17 earnings announcement. Revenue growth, forward guidance, gross margins and management commentary will be particularly important in assessing whether the underlying business remains on track.

5. My investment view: Buy the business, but reassess the price

I would not automatically abandon Nvidia because Jensen Huang has resigned.

Its technology, software ecosystem, customer relationships and competitive position were built over decades. They do not disappear overnight because one person leaves.

However, I would also avoid assuming that the previous valuation is automatically justified.

The next few quarters will be important in determining whether Nvidia can maintain its growth trajectory under new leadership.

For existing shareholders, I would focus on earnings and business fundamentals rather than panic selling.

For new investors, I would prefer to wait for greater clarity on the leadership transition and reassess the valuation before entering.

My biggest takeaway: Nvidia’s AI opportunity may be bigger than any single CEO, but its ability to execute that opportunity without Jensen Huang has yet to be proven.

The real test is not whether Nvidia can survive his departure. It is whether it can continue leading the AI industry without the person who built its empire.

Disclaimer: This post is for discussion purposes only