Smart People React to Nvidia Board Potentially Ousting Jensen Huang | Invesloan.com

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 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 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 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, 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, 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, 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, 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.”