Forget Former Nvidia CEO Jensen Huang — This Is the Real Question Investors Need to Ask About Nvidia Stock
Jensen Huang, who co-founded Nvidia (NASDAQ:NVDA) over three decades ago at a Denny’s restaurant, is officially out as CEO of the artificial intelligence (AI) chip giant.
Multiple reports about multiple alleged extramarital affairs Huang had, one with a woman who may have been a Chinese spy and others with as many as two Nvidia employees, quickly led the torchbearer of AI to resign.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
CFO Colette Kress has been named interim CEO. Nvidia stock has sunk over 28% in the past month.
While Huang is undoubtedly the most important CEO in AI, his departure is unlikely to slow down the sector, and Nvidia is likely to press on as the dominant chip player. But that doesn’t mean Nvidia is in the clear. Forget Huang — this is the real question investors need to ask about Nvidia stock.
Jensen Huang. Image source: Nvidia.
Has Nvidia’s revenue included illegal chip sales to China all along?
There’s no denying Huang’s importance to Nvidia — his leadership may have even commanded a premium for the stock.
But at the end of the day, Nvidia will still have the same graphics processing units (GPUs) that have significantly outperformed their competition. I guess one could argue that future innovation might not be as secure as it was, but I don’t think anyone can say that definitively.
Nvidia has maintained a moat since 2006 through its CUDA programming platform, on which most software developers have been trained, which makes switching to a new system difficult. That advantage won’t go away.
When it comes to the stock and the financials driving it, the real question investors need to ask concerns Nvidia’s relationship with the Singaporean data center Megaspeed, which reportedly led to illegal chip sales. The alleged Chinese spy with whom Huang reportedly had an affair, Alice Huang (no relation to Jensen), was a top executive at Megaspeed.
Tech news site The Information reported this week that over $7 billion of chip sales from Nvidia to Megaspeed eventually made their way to China illegally.
Nvidia has not been able to sell chips to China since April 2025, when the U.S. government said it would require the company to obtain an export license. Since then, Chinese sales have been virtually zero, according to the company. Nvidia and Huang have lobbied President Donald Trump’s administration to restart sales in the region. But even before then, Nvidia could sell only older-generation chips due to national security concerns.
