I am surprised by the market and boards response to this, when you have someone like Elon who was visibly on drugs in the oval office and he's still puttering around causing problems
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There's likely more things going on behind the scenes that we aren't being told about. This probably isnt about the affair but something else like the board wanting to get rid of him or use him as a scapegoat for lower share prices while the AI bubble begins to collapse. I seriously doubt the board just learned about this in the past few weeks.
That makes sense. For all we know someone on his staff has been pining for his job and been whispering in the boards ear for a long time
This but also Elon had more political clout at the time, he has way way more control over the stock and the board, and the stock was super inflated based solely on Elon and shit he was saying.
At the time everyone was saying that firing him, even if possible, would send the stock down to like 10% of its value. Which there's no way a board would do.
Also that's still true.
I was also surprised. Musk has literally made cars with an autopilot that killed a lot of people and made a nazi salute in public.
I think this will also blow over but it would be a big deal I guess if jensen is replaced.
Nvidia has a report in six days and at this price of 158 dollars, a good report may actually boost the stock for once.
Mostly because Musk has been able to keep his stocks mostly high. Jensen's actions might be the start if the bubble collapse, casuing the boards investments to all start plummeting. They want to try to right the ship before they lose too much value.
That being said, I don't know if a new CEO is going to be better for consumers looking for GPUs. The new CEO might only care about data center compute given the size of that business currently.
The stock market is such a fucking sham.
If people really believed Nvidia was an indispensable part of the future yesterday, that hasn't changed in the slightest regardless of how many honeypots Jensen was messing around with. We didn't really need any MORE proof, but the fact the stock is falling is absolute evidence that nothing even close to reality or future potential drives stock valuations.
I think this is one of the few cases where the CEO's position does matter. There has been a schism within the US govt and tech sector over whether or not to sell AI chips to China. Jensen Huang was the unofficial leader of the 'yes' faction, arguing that it would cut Huawei's marketshare (and therefore R&D budget). Of course, Nvidia being allowed to sell chips to more customers is in his interest, so he isn't entirely neutral here. Now the US govt and US customers of Nvidia's chips will demand further restrictions on chip sales to China. In the short term, their sales will fall slightly. In the long-term, Huawei will overtake them.
I’m sure it has NOTHING to do with illegal exports and the reports this was known since 25 and covered up. And those that helped cover were just dealt a historic blow.
Yah it has more to do with thr idea that the gov will crack down on these exports, hurting sales. That might pop the bubble since the whole AI movement is now looking shaky to begin with.
They could be reacting to the likelihood of the board removing him as CEO, rather than the company's role in society. He's been the only CEO since the company began, and they have certainly performed better than the competition. There's no way of knowing what a new, unnamed CEO would do.
Realistically though, those are long-term concerns. The market tends to be much more short-sighted, usually on this quarter's results.
I don't get it, wall street and business in general are all happy about Orange, cheater and rapist, yet when Huang has affairs, they go bloody red. Not to mention delusional lying impregnator Elon. 🤷
Well it matters for more than one reason. He cheated on his wife with a literal spy, that is going to hurt Nvidia especially now that Democrats are going to take power and they may actually hold people accountable for breaking export restrictions.
Then there's the fact that his a wife may divorce him and there is no prenup. Most of his wealth is Nvidia stock and she will take half of that. Overnight she's gonna become a major stakeholder in the company. How she will act with that power nobody knows and investors don't like unknowns.
Jensen doesnt even own a majority stake of the company.... his wife doesnt suddenly become a major shareholder even if she took ALL his shares
He has 3-4% of the shares as the largest individual shareholder.
Export restriction violations is my guess.
They want to say "he's gone, we fixed it" and avoid any consequences while pocketing a fuck ton of illicit money.
Yeah, but... and hear me out, those affairs were not of pedophilic nature. If you want to play with the big boys you got to... no, not going to finish that sentence, need to go clean myself in the shower from all this crap.
Play with the little ones first?
Terrible. Seemingly true, but terrible.
Orange was voted in, they can't oust him. Plus being president of the United States tends to come with a lot of power. Jensen only has a 3.6% stake in the company and no supermajority requirements like Tesla has. This second relationship is with a vice president who reports directly to him. Many have been ousted in the past for having relationships with employees in violation with company policy, e.g. Intel's Krzanich and Nestlé's Freixe.
Neither huang nor the other lady are white. Trump and elon are.
It’s just an excuse to pint at while the bubble pops.
I think the most likely scenario is that the affair with the Chinese spy is much worse than has been revealed in the press so far, so NVIDIA is trying to get ahead of that story by revealing this and ousting Jensen for it, even though it's fairly uncommon to fire a CEO over an affair.
And nobody mentions the possibility that this guy and his wife may have an open or poly marriage, an agreement not as uncommon as most people think. Due to stigma most poly people don't tell everyone or anyone about their love life - because it is their love life, not that of a billion spectators or whoever.
About the spying I can't say anything. About their marriage I can say: Let the two decide what they make of it.
Given that Huang said he was unfaithful to his wife and made a public apology to her, I don't think they had an open or poly agreement. As another poster mentioned there might not be a prenup either so a divorce (which is likely) will force Huang to hand over half of his shares making his wife a major shareholder overnight. That creates a lot of tension for people invested in Nvidia.
Maybe she's the better CEO? Maybe the share holders shouldn't have trusted a narcissist that can barely control himself?
We'll see what comes out of it.
She's never gonna be CEO. She could with a divorce become a major shareholder and thus have serious power over the direction of the company. She likely has no experience providing direction let alone for such a huge company and that creates uncertainty. No one wants to invest in uncertainty hence stock prices plummeting just on the outlook that this can turn sour.
Plus half his leather jackets. That’s probably worth another 2% of Nvidia stock
Yeah, but if I was a public figure and got caught sleeping around my wife and I would both be making statements pretty quickly about how she knew and was cool with it. We've heard nothing of the sort from them
While I can agree with you that he and his wife can be in a open marriage, if that fits them good for them honestly, the problem is that he slept with an alleged Chinese spy (probably used to be able to blackmail him and/or circumvent export restrictions) and a manager from NVIDIA (with the company rules that explicitally forbid them).
I see this as a "who" problem more than a "what" problem.
It's insane that a company that exist only for profits, has higher standards than is required for the US presidential position which is supposed to serve the good of the people and the country.
USA is a crazy country.
The USA would have turned on a president back in the day for having a affair we literally saw that happen with Clinton. The president would have been impeached.
It's literally that Trump filled the government with people sycophantic to him and broke so much stuff that holding him accountable is a pipe dream.
On the other hand, I read an article that basically alleged that Huang's wife was in oj the deal to sell chips to the CCP and I suspect the affair(s) was an open secret. The only reason they are considering ousting him is to save face and curtail the scope of the probe/investigation.
Don't get it twisted, they're more concerned that the gov will attack the company over its illegal exports and that the CEO might get fired, him being the boss for over 3 decades, he'd bee tough to replace. This combination could pop the already stressed bubble AI is in since theirs no telling how well a new CEO will fair
Fun fact! 🙃
The CEO of AMD and Nvidia are cousins!
cousins!

Mabye
Its gonna be a fun christmas dinner

Nvidia spent 33 years building a parallel computing empire while apparently keeping its leadership architecture strictly single threaded. The scandal is serious, but the bigger corporate failure is having no clear successor. Imagine selling redundancy to the world and forgetting to install a backup CEO.
Pretty sure someone from the trump circus is more than ready to take over.
Let's just add it to the acquisitions for the skydance conglomerate. What could go wrong?
He wears those jackets like he's already divorced and trying to pick up ladies 20 years younger.
Not how I thought the AI bubble would end, but hell I'll take it.
I shorted too soon
He won't be ousted, maybe at most forced to forgo some stock. He's too intrinsically tied to the value of the company. Sort of like Musk and how overvalued his companies are, but to a lesser extent.
**EDIT: ** I stand corrected, he stepped down. Though, unsurprisingly, the stock took another shit.
Looks to me like he is just a sales man that talks a lot of bs. Anyone can replace him. Even AI could do that job.
I know everyone hates a salesman, but sales is absolutely a trade and some people are way better at it than others.
god that would be hilarious if they trained a model off of all his interactions and public appearances and then had a virtual CEO.
Functionally, that is true for all CEOs. But this is a PR game.
This is going to be like when openAI ousted altman all over again.