Trending! Will Jensen Huang resign due to rumors? NVIDIA adds insult to injury for AI trading

NVIDIA CEO Jensen Huang publicly admitted to an extramarital affair on Sunday, prompting the company's board to announce an independent investigation. This news adds further uncertainty to NVIDIA and the entire AI trading sector, which is already under pressure.

According to China News Service, on November 8 local time, NVIDIA founder and CEO Jensen Huang acknowledged his infidelity in a letter to employees, stating that his actions have hurt his wife and children, with no excuses, and he is willing to take full responsibility and accept criticism.

The NVIDIA board issued a statement that day, announcing the formation of a committee composed of independent directors and hiring external independent legal counsel to investigate the rumors surrounding Jensen Huang. The statement said, "The board currently has no reason to believe that national security or NVIDIA's secrets have been compromised," but "will review all available information." Jensen Huang expressed support for the investigation and will fully cooperate, while a company spokesperson stated he will "continue to serve as CEO without interruption."

After the news broke, "Jensen Huang admits to infidelity" quickly topped Weibo's trending searches. NVIDIA's stock fell over 3% in after-hours trading. Meanwhile, Asian stock markets opened with mixed results—Japan's Nikkei 225 index opened up 0.8%, and the Topix index rose by 2%; however, South Korea's Seoul Composite Index opened down 0.5%, with early losses expanding to 1%.

"Big Shot's Extramarital Affair" Becomes Global Sensation

According to media reports citing anonymous insiders on the 7th, the U.S. government believes Jensen Huang is in a romantic relationship with Alice Huang, a former executive at a cloud computing company based in Singapore. The report describes their relationship as "close." In the weeks prior, the U.S. government had already begun investigating the close interactions between Jensen Huang and Alice Huang.

Bernstein analyst Stacy Rasgon wrote in a research report that "the nature of their 'romantic' relationship seems to have been confirmed," while the related accusations currently appear (somewhat) weaker.

NVIDIA had previously denied any relationship beyond ordinary business interactions between Jensen Huang and Alice Huang. According to Global Times, a NVIDIA spokesperson stated that Jensen Huang "communicates with thousands of clients each year," and such interactions are "not unusual or unexpected."

However, just over the past weekend, Jensen Huang was revealed to be involved in an extramarital affair and sent a letter to all NVIDIA employees. He stated:

To my wife and family: I love you. I know that an apology cannot undo what has happened. I hope our family can slowly heal, and in time, I can earn back your trust.

To my colleagues at NVIDIA, including partners I have worked with for decades, the board, global partners, and shareholders: You deserve better from me. It has been my honor to lead NVIDIA. My duty is to serve you and be worthy of your trust, and I have not done that. I will continue to dedicate myself to NVIDIA and work hard to regain your trust.

In response to national security-related questions raised by news reports, the NVIDIA board has initiated an independent investigation. I support the investigation and will fully cooperate. I love my country and this company, and I will protect NVIDIA and support U.S. national security.

Screenshot of the letter sent to all employees by foreign media

NVIDIA Stock Faces "Key Person Risk"

For the market, the core question of this incident is: Can Jensen Huang continue to lead NVIDIA?

Yorkville Ives analyst Daniel Ives characterized this incident as Jensen Huang's "black eye moment" and expects it to provoke further inquiries from Congress. He warned that:

Depending on the results of the board's investigation, Jensen Huang is likely to be removed from the CEO position, which would pose risks to the stock price, as he is crucial to NVIDIA's global development and strategy.

Stacy Rasgon directly pointed out NVIDIA's "key person risk." He wrote that if Jensen Huang is "unwilling or unable" to lead the company, it is currently "unclear who would (or could) take over." He added, "This whole situation, at least on the surface, is very bad."

Both analysts believe this incident could keep NVIDIA's stock under pressure for some time.

On social media, independent analyst Jukan Citrini expressed similar concerns: "In this intense industry competition, the CEO's attention and energy are scarce resources. Jensen Huang will have to expend a lot of mental energy dealing with family matters, which will inevitably encroach on the bandwidth originally allocated for company strategy, execution, and external negotiations."

Congressional Pressure: Political Risks Compound

The timing of this incident coincides with NVIDIA facing multiple pressures from Congress.

According to Global Times, after the U.S. midterm elections, the Democratic Party has taken full control of both the House and Senate, and tech giants that were previously close to the White House are facing new political challenges. Bloomberg reported that AI companies that have maintained close ties with the White House over the past two years are preparing to deal with the consequences of the Democrats' victory in the midterm elections.

Prior to this, three Republican committee chairs in the House had jointly sent a letter requesting Jensen Huang to attend a closed-door briefing on November 18 to explain related interactions and NVIDIA's security protocols. Reports indicate that Democrats plan to introduce a series of AI-related bills covering consumer protection, independent testing requirements, and liability identification.

According to analysis by Hu Xijin, in the two trading days following the midterm elections, U.S. AI sector stocks experienced severe fluctuations, and Jensen Huang's personal net worth decreased by $15.1 billion. Hu Xijin predicts that Jensen Huang and Elon Musk will face a round of troubles, with those minor lawmakers seizing the opportunity to assert their authority, but the likelihood of these top executives being taken down is minimal.

Another Heavy Pressure on AI Trading

Before this incident, AI-related stocks were already under pressure from multiple sources.

Since this fall, AI stocks have been under continuous pressure due to concerns about the sustainability of AI spending, tightening financing conditions, and disappointing performance from some large tech companies. As a core target of AI trading, this personal turmoil of the CEO undoubtedly adds another variable to the existing pressures.

A NVIDIA spokesperson stated in a statement: "Today's news will not slow NVIDIA down." The board also stated in the announcement that it "has full confidence in Jensen Huang and his leadership team and will announce further developments at the appropriate time."

However, for investors, when the investigation results will be released and whether Jensen Huang's position is secure remain the biggest uncertainties at present.

Risk Warning and Disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at your own risk.