Jensen Huang resigned as Nvidia’s chief executive on Thursday. Three days later, he is reportedly talking about coming back.
Huang has discussed a return with confidants, the Financial Times reported Sunday, citing several people familiar with the matter. One ally is building a “war room” of tech executives to lobby the board and the White House.
Why Huang Left Nvidia
Huang stepped down after reports of affairs with a subordinate and with Alice Huang, an executive at Singapore-based Megaspeed. The FT describes her as a suspected Chinese spy. The scandal has put Nvidia’s sudden leadership crisis under a spotlight, along with how it sells AI chips to Asian buyers with possible China links.
Even his supporters admit the problem. “Having an affair with a subordinate is a fireable offence,” one person working on his return told the FT.
Chief financial officer Colette Kress now runs Nvidia on an interim basis. The FT also reported the board approached Arm CEO Rene Haas as a possible successor. Nvidia said no “formal” process has started.
Silicon Valley Versus Washington
“Everyone that matters in tech outside the frontier labs loves Jensen,” that ally told the FT. Elon Musk and Epic Games CEO Tim Sweeney backed a public letter urging the board to “Bring Jensen Back.”
Washington is pushing the other way. Treasury Secretary Scott Bessent on Sunday called for a “dramatic shake-up” in Nvidia’s leadership.
Huang never held a controlling stake. As BeInCrypto reported, only Nvidia’s board decides whether he returns.
How Will Nvidia Stock React?
Big investors are split. Billionaire Leo KoGuan told Bloomberg he has stopped buying.
“No further investment without Jensen,” he said.
Altimeter’s Brad Gerstner and Atreides’ Gavin Baker, both large shareholders, asked the board to keep “all options on the table,” including Huang’s return.
Shares closed down 4.34% at $166.19 the day Huang quit, after falling as much as 14% intraday. They slipped again Friday. The stock sits more than 30% below its October 6 record and trades near 12 times expected earnings, its cheapest level since 2012. Bernstein cut its price target to $200 from $400.
Meanwhile, rival AMD has outrun Nvidia by a record margin. Tuesday’s report, in a crowded week for AI stocks, will be Kress’s first. Who leads Nvidia next is still undecided.
“It’s going to be an interesting week to say the least,” analysts at the Kobeissi Letter indicated.
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