Investors say the AI boom will still lift Nvidia after Jensen Huang's departure
AI boom will lift Nvidia even after Huang’s exit, investors say
Jensen Huang resigned as Nvidia CEO after an extramarital affair was exposed, CFO Colette Kress will take over temporarily, and the company's stock fell as much as 14% intraday on Thursday, closing down 4.3%, wiping out $182 billion in market value. The exposure involves two extramarital affairs, and one of the women is considered by US authorities to be a Chinese spy. Large investors remain optimistic about the outlook; Wellington Management's Matt Witheiler said Nvidia is a $4 trillion company because of last quarter's $100 billion in revenue and 100% year-over-year growth, not because of Jensen Huang himself; Blue Whale fund's Stephen Yiu said the company's relationships with customers and suppliers remain solid, but some top-ten shareholders are concerned about key-person risk.