To The Moon

$NVIDIA(NVDA)$ investors are facing an unusual situation. The world’s leading AI chipmaker is dealing with a corporate governance crisis at the same time that the AI investment boom is raising expectations for future growth.

Following reports of another alleged relationship involving Jensen Huang and Nvidia healthcare executive Kimberly Powell, concerns about the company’s leadership intensified. The reports raised questions about conflicts of interest, corporate governance and the board’s ability to oversee its CEO.

Huang had already acknowledged being unfaithful to his wife in a message to employees. Nvidia’s board also launched an independent investigation into separate national security concerns.

The situation eventually resulted in Huang’s resignation on November 12, effective immediately.

For shareholders, the question is no longer whether he will leave. It is what happens to Nvidia after his departure.

1. The biggest risk is uncertainty, not necessarily weaker chip demand

Jensen Huang was more than an ordinary CEO.

He built Nvidia’s strategy around GPUs, CUDA software and a complete AI computing ecosystem. His relationships with major technology companies also helped position Nvidia at the centre of the AI revolution.

His departure creates questions about whether the company can maintain the same pace of innovation and strategic execution.

However, Nvidia still has an experienced management team, established customers and a substantial technology ecosystem.

A CEO departure does not automatically mean the underlying business is deteriorating.

2. Can Colette Kress stabilise the company?

CFO Colette Kress has been appointed interim CEO.

Having served as Nvidia’s CFO since 2013, she understands the company’s financial operations and business strategy.

Her immediate challenge will be restoring confidence among employees, customers, institutional investors and shareholders.

I would watch for three things:

• Whether Nvidia appoints a credible permanent CEO.

• Whether its product development and delivery schedules remain unchanged.

• Whether major customers maintain their AI infrastructure spending.

A smooth transition could help the stock recover. Prolonged uncertainty could keep investors on the sidelines.

3. The AI business is still the bigger investment question

Even with the leadership controversy, the long-term AI opportunity has not disappeared.

Microsoft, Amazon, Google and Meta continue investing in AI infrastructure.

Nvidia remains a major supplier of the GPUs, networking equipment and software needed to build these systems.

However, competition from AMD and custom-designed chips is increasing.

Investors also need to consider whether the enormous spending on AI infrastructure will eventually generate sufficient returns.

If AI demand remains strong, Nvidia could continue growing despite its leadership problems.

But if customers slow spending or diversify their suppliers, the company could face pressure from several directions simultaneously.

4. Sell everything or buy the dip?

I see three possible approaches.

For existing shareholders:

I would avoid making an emotional decision based on the headlines alone. Instead, reassess the original investment thesis. If Nvidia maintains its earnings growth, customer relationships and competitive position, holding may still make sense.

However, investors with excessive exposure to one stock should consider their concentration risk.

For investors considering buying:

I would not rush to buy simply because the share price has fallen.

The leadership transition remains unresolved, and another period of volatility is possible. Staggered entries may be more sensible than committing all available capital at once.

For short-term traders:

This is a high-volatility situation. News about the investigation, management appointments and institutional sentiment could move the stock sharply in either direction.

Trying to predict the exact bottom is particularly risky.

5. What could change my view?

I would become more positive if:

• Nvidia appoints a strong permanent CEO.

• Its November 17 earnings confirm continued AI demand.

• Revenue guidance and gross margins remain healthy.

• Major customers maintain their spending commitments.

On the other hand, further governance problems, disruption to management or weaker customer demand would make me more cautious.

My conclusion: Don’t confuse a leadership crisis with the end of the AI boom.

Nvidia’s biggest competitive advantages were built over decades. They cannot simply disappear because its founder has stepped down.

But the company now needs to prove that its success can continue without Jensen Huang at the helm.

Personally, I would rather wait for confirmation of stable leadership and strong financial results than try to catch the bottom during a corporate crisis.

The real investment question is not whether Nvidia can survive without Jensen Huang. It is whether Nvidia can continue delivering the growth that investors have already priced into its shares.

A great company can still be an expensive stock, and a falling stock is not automatically a bargain.

Disclaimer: This post is for discussion purposes only