Abstract:
Nvidia’s board of directors announced on November 8 that it would launch an independent investigation into allegations regarding personal matters related to CEO Jensen Huang. Affected by the relevant turmoil, Huang Renxun's departure or stay has become the focus of the market. On the 9th local time, Nvidia’s stock price fell, eventually closing down 4.27% to US$178.67 per share, with its market value shrinking by approximately US$193 billion (approximately RMB 1,288.2 billion). Five minutes after the U.S. stock market closed, Nvidia and Huang Jensen were slapped with a shareholder class action lawsuit, accusing them of defrauding shareholders.
Nvidia's stock price was already under pressure before the impact of this scandal. Market concerns about the valuation of companies in the AI track continue to heat up, and the AI sector has generally suffered sell-offs. Nvidia's stock price has fallen by nearly 20% in the past month.
Analysts believe that once Huang Renxun leaves, Nvidia will face a huge succession problem. The 63-year-old Huang Renxun is the core pillar of Nvidia. According to data from the financial data service provider FactSet, Huang Renxun is the fifth largest shareholder of Nvidia, holding about 3.58% of the shares. Analysts believe that the company currently does not have a mature succession plan. If Huang Renxun leaves, this will be a large-scale leadership change, and the company is not prepared for this. (CCTV Finance)
Comments