Wow, Reuters is orwellian. I was just reading something about Huang owning something like 3,6% of the company, when mid-sentence the page refreshed and the paragraph disappeared.
Bummer. He stood in the way of regulatory capture and AI monopolists had him removed. I foresee the open model / open weights ecosystem eventually getting locked down, especially the most competitive Chinese models.
It just sucks because Jensen was basically the last big tech CEO that seemed like a human being, and knew what the hell he was talking about. I guess a little too human in the end. But this has pretty much destroyed my last bit of faith in any of them.
So, I understand this is getting priced in to some degree, but I just don't see how any of this will change the fundamental core business value of NVIDIA.
Even if they have to pay a fine or increased regulatory scrutiny. At this point NVIDIA is more like SHELL(10 years ago maybe/during oil spill scandal) than a tech company. Its going to keep printing money with its chips.
So, I guess I'll timestamp my prediction that now is a good time to buy NVIDIA stock.
“some fines” could be a very big deal. Sanctions laws have teeth.
How much of Nvidia’s revenue came from infringing sales to china? If so, that revenue is probably going to disappear as now they will have to really be serious about export controls or face much greater pain. Some estimates I’ve seen is 30% of their revenue perhaps disappearing overnight!
Sure, but then that would mean they can now take those chips and sell them to Musk, Zuck, or Dario at inflated prices instead.
And I'm pretty sure any CEO with at least a bachelors degree knows about the De beers diamonds story, so, I really find it hard to believe they will struggle with the concept of maintaining their artifical scarcity/demand.
How though? Is there any legal cases where this has been sucessfully done before? And even they couldn't NVIDIA drag their feet on it for years in court?
Personally I think a bigger risk than that is AI models getting good enough to legitimately just reverse engineer and open source CUDA directly.
Sort of agree but he did go around and spoke how export controls to China have no effect, and then he's in bed with a foreign asset, so lots of geopolitical stuff in there.
Plus whole lot of people waiting for that signal that the "AI bubble " is about to burst.
They'll be fine for a few years with a talking donkey running the place because they have a roadmap. And then when the situation on the ground has changed and the future is ambiguous, they will nosedive like SGI did. My money is on Huawei now. Way to go America! You've actually outdumbed the CEO's poor choices of mistresses.
Meh, not really. NVidia stock is presumably rebounding as we speak -- unless they pick someone political or unhinged to take over, this will just be a blip.
And I doubt it'll cost him much. What could you pay the founder of the second most valuable company on the planet who already holds $150B in equity? It'd be as absurd as paying Donald Trump.
> NVidia stock is presumably rebounding as we speak
Not in premarket so far, 12% down sing yesterday.
Also why would it do better? Overall Huang seems to be a highly competent CEO. Replacing him with someone seems risky (especially if the board is influenced by Trump & co.). Especially given that Nvidia never had any other CEO.
As an outsider, can the US president pardon Jensen AND Nvidia? Let’s say he “donates” a cool hundred million dollars, and the fact that as per US law corporations are people, I think Trump can technically do that?
Would make 0 sense for several reasons. Very gullible thing to take anything seriously Musk spouts out. So strange that there is basically a fantasy world out there for Musk fanboys.
Jensen is basically Nvidia, he has ruled it for over 30 years single handedly, he took the risks and had the vision to take it to where it is today under his leadership. Without him, they are just some chip company, and will be revalued as such. The innovation will stop.
How many of his dozens of direct reports will leave the company as his successor, guided by some management consultancy, convert the company to a more normal hierarchy?
I'm quite interested to know what you mean here, between the lines. OK, he was running a multi-trillion dollar company, are you saying currently it's a over-reaction because of that, and the reaction would have been justified if it was smaller/bigger company? I'm really not sure what the underlying point you're trying to make here.
My understanding is that he has been very hands on, but it's also not that unusual for people who have built successful businesses to "check out" once the role chances from building an early-stage company to growing a large one. Whether or not that works obviously greatly depend on whether the people around them can take up the slack.
Resignation means that he can start liquidating his shares without input from shareholders or directors.. Divorce will also be likely. Affairs with the staff would matter if he had promoted people; who knows what else is in that stack. He had planted his own kids with no experience in tech as executives there too . He is a zillionaire though and he has enough cash for many generations.
I guess even if Jensen Huang leaves scorched earth, he will have sufficient money for the rest of his life. On the other hand, any other person who invested into Nvidia stocks will have a much more serious problem. :-)
So, it would not be a dumb idea for Jensen Huang to leave scorched earth and "let the world burn" (and in particular cause utter panic in the AI sector). :-)
Elon(and others) got it right by making perfidity a feature of there character right up front by bieng VERY public about whatever they get up to.
Jensen just so happens to be a convienient scapegoat to buy a news cycle away from the very difficult political and economic situation that would otherwise be the lead story, and I bet that having him fold his hand quite so easily is actualy not what they were hoping for, and good on him for doing it.
NVIDIA's long-term future will suffer because of it, no matter how correct the decision is
The resignation is evidence that no.
Even if they have to pay a fine or increased regulatory scrutiny. At this point NVIDIA is more like SHELL(10 years ago maybe/during oil spill scandal) than a tech company. Its going to keep printing money with its chips.
So, I guess I'll timestamp my prediction that now is a good time to buy NVIDIA stock.
How much of Nvidia’s revenue came from infringing sales to china? If so, that revenue is probably going to disappear as now they will have to really be serious about export controls or face much greater pain. Some estimates I’ve seen is 30% of their revenue perhaps disappearing overnight!
And I'm pretty sure any CEO with at least a bachelors degree knows about the De beers diamonds story, so, I really find it hard to believe they will struggle with the concept of maintaining their artifical scarcity/demand.
Personally I think a bigger risk than that is AI models getting good enough to legitimately just reverse engineer and open source CUDA directly.
Plus whole lot of people waiting for that signal that the "AI bubble " is about to burst.
I mean, imagine nvidia becoming like Apple, with an AI App Store ... trying to maximize their profits above everything else.
And I doubt it'll cost him much. What could you pay the founder of the second most valuable company on the planet who already holds $150B in equity? It'd be as absurd as paying Donald Trump.
So if he held 150B stock say before, now he has 100B.
The rest of the market isn’t looking very solid either.
Not in premarket so far, 12% down sing yesterday.
Also why would it do better? Overall Huang seems to be a highly competent CEO. Replacing him with someone seems risky (especially if the board is influenced by Trump & co.). Especially given that Nvidia never had any other CEO.
I am not sure if you and I are looking at the same chart. Down 12% Pre Market.
It’s really not hard.
P.S: not saying this should happen.
Then it was a negotiation about how.
Sometimes people can see the writing on the wall and choose to not burn down their life’s work on the way out.
That’s also why more recent tech companies got rid of that pesky independent board by having total voting control.
But my guess is, he'd rather resign on this note than what will come out in a few weeks.
But that doesn't preclude there being a lot of competent talent on the second rung. (I think 60 people reported directly to him.)
Hard to imagine that could have been the case given that he was Nvidia's CEO from the very beginning.
Don't worry about him.
So, it would not be a dumb idea for Jensen Huang to leave scorched earth and "let the world burn" (and in particular cause utter panic in the AI sector). :-)
LLMs will be completely unaffected, but the pricing remains to be seen.