Investor Gary Black doubts Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang can keep his job after the board opened an independent review into his relationship with a woman U.S. officials suspected of ties to Chinese intelligence.
Expects a Board Exit
Huang has not committed a crime or a civil wrong, the Future Fund‘s managing partner said in a post on X Sunday, but scrutiny of his conduct and judgment will likely “result in his removal” by the company’s board of directors.
“I doubt Jensen Huang will be able to remain as NVDA CEO,” Black added.
Succession Uncertainty Could Pressure the Stock
“This could put short-term pressure on the stock of the second most valuable company in the world,” Black said, adding that Huang has “no natural successor within the company.”
Huang appeared publicly with his daughter, Madison Huang, a senior director of product marketing at Nvidia, in August, and reports have since speculated that she could eventually succeed him.
Many portfolio managers will reduce their Nvidia holdings in the coming weeks over uncertainty about who could succeed Huang, he said, though he does not see long-term value impairment.
Jensen Huang Apologizes as Board Opens Probe
In a message to employees that Axios reported, Huang said, “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did.”
Nvidia’s board said an independent committee of directors, assisted by outside counsel, will oversee the inquiry.
The company’s public policy communications head John Rizzo said Huang is “committed to continuing to lead NVIDIA as CEO without interruption.”
The Times reported last month that Alice Huang, a former executive at Singapore-based Megaspeed, was allegedly tasked with seeking information and potentially influencing access to Nvidia’s advanced chips in China.
Three House Republican committee chairmen asked Huang in a letter last week for a closed-door briefing on Nov. 18 about his reported interactions.
Price Action: On Friday, Nvidia shares closed 2.78% at $186.64 and fell 3.06% to $180.98 in overnight trading on Sunday.
Benzinga Edge rankings indicate Nvidia’s stock has a Momentum score in the 20th percentile and a Growth score in the 98th percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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