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Bloomberg Television1h 38m

Nvidia Board Meets As Jensen Huang Fallout Widens

Jensen Huang, Yvonne Man, Stephen Engle, Stacy Rasgon, Sam Konrad, Felix Wang, Einer Tangen, Tom Giles, Min Min Lo, Stephen Jung, Anthony Stevens, Kunjan Sobhani, Sami Cha, Trista Xinyi Luo, Ivan Espinoza, Nick Takahashi

Interview, Press Conference
  • The NVIDIA board is considering removing CEO Jensen Huang due to alleged code of conduct violations, potentially appointing an interim executive like CFO Colette Kress before conducting a wider search involving candidates such as Lisa Su or Renee Haas.
  • Congressional committees are expected to demand answers on national security implications, with investigations into potential information dissemination to China likely driving further export restrictions and a complete closure of the road for NVIDIA chips to the Chinese market.
  • Analysts predict that a leadership transition could result in a loss of the "Jensen premium," with Dan Ives estimating a potential valuation drop of 25% to $225 per share, while Bernstein anticipates increased regulatory headlines and a shift toward conservative equity investments by new management.
  • Operational risks include potential shipment delays, earnings impacts from supply chain guidance challenges, and the uncertainty regarding whether high-net-worth employees will remain or if new leadership will terminate NVIDIA's circular financing ecosystem.
  • Competitive dynamics may shift as AMD gains a "monster opportunity" to capture customers, while China is expected to accelerate decoupling by backing domestic innovators like Huawei, Alibaba, Cambricon, and Haiguang to fill the supply gap left by restricted access to U.S. technology.
  • Broader market impacts involve downside pressure on AI-related stocks in Hong Kong and platforms like Baidu, alongside a potential increase in bond yields that could pressure equity markets within the next three to six months.
  • In the investment sector, Jupiter Asset Management is neutral to slightly underweight on technology due to valuations, increasing cash levels and defensive weightings in Australia, Singapore, and India, while Bloomberg Intelligence forecasts no immediate risk to fiscal 27 and 28 numbers but warns of headline and deal velocity risks.
  • Other corporate developments include Nissan aiming to export high two-digit volumes from China and target 200 billion yen in operating profit before tariffs by its February strategy announcement, alongside Meta's infrastructure chief expected to depart in early 2027.
  • The Anthropic IPO is projected to be the largest ever with a deal size of $90.4 billion and a potential valuation of $1.4 trillion, while Goldman Sachs forecasts $685 billion in revenue for the company by 2030.
  • Supply chain stability for AI data servers is expected to hold through 2028 with TSMC and 2027 with Honhai (Foxconn) despite potential CEO changes, though MediaTek could benefit from TPU supply chain missteps and Samsung remains poised to lead the memory trade.