NVDANeutral
Nvidia falls after Jensen Huang's resignation, $3bn of Chinese projects at stake
Jensen Huang's resignation sends Nvidia plunging on Wall Street, according to Investir Les Echos. Boursorama points to a risk for $3 billion of Chinese projects, while Seoul says its GPU commitments will be honoured.
By Yvan T., published
The facts
According to Investir Les Echos (12 November), Nvidia shares plunged in New York after the announcement of the resignation of its CEO, Jensen Huang. The outlet places the episode in a session in which Donald Trump says he does not need a deal with Iran, and in which the Cac 40 is trying to hold up. The information available to us does not specify the scale of the fall or the reasons for the departure.
According to Boursorama (13 November), the departure, combined with scrutiny from US authorities, puts at risk $3 billion of Chinese artificial intelligence projects. The article’s headline does not detail the projects concerned, their customers or their timetable.
Also according to Boursorama (13 November), South Korea says Nvidia will honour its GPU commitments despite Jensen Huang’s resignation. This is a position stated by Seoul. We have no evidence that Nvidia has confirmed it, or in what form.
Our take
Our take: the departure of an executive so closely associated with the company explains the market’s sharp reaction. But the available sources remain very incomplete. We do not know the reasons for the resignation, the successor or the exact size of the decline. Without these elements, it is hard to say whether the fall is an overreaction or the start of a genuine change of trajectory.
Friday’s two signals partly offset each other. On the China side, $3 billion of projects under threat weigh on sales visibility, and US scrutiny adds a regulatory risk that does not depend on the CEO. On the South Korea side, the message is reassuring on continuity of deliveries, but it comes from a customer, not from Nvidia.
We therefore maintain our neutral view of 10 November. Nothing in this information demonstrates lasting damage to the business, and nothing justifies betting on a quick rebound either. We will revise our view when the company clarifies the succession and the nature of the difficulties in China. In the absence of figures in the sources, we are not publishing a price target.
Risks to watch
Governance remains unclear until the reasons for the resignation and the name of the successor are known. Chinese AI projects may be delayed or cancelled under pressure from US scrutiny. Conversely, a quick rebound is possible if the succession is judged reassuring, which makes any short-term reading fragile.
Sources
- Donald Trump affirme ne pas avoir besoin d'accord avec l'Iran et Nvidia plonge à New York après la démission de son PDG Jensen Huang, le Cac 40, lui, tente de résister
- Le départ de Huang et la surveillance américaine mettent en péril 3 milliards de dollars de projets chinois d'IA
- La Corée du Sud affirme que Nvidia tiendra ses engagements en matière de GPU malgré la démission de Huang
Information from these sources is summarised and rewritten. It has not been independently verified beyond cross-checking between sources; where the reliability of a piece of information is in doubt, the article says so.
Transparency
- AuthorTo be completed, Founder and author of the site, private investor.
- Conflicts of interestOn the publication date, holds no position in Nvidia. The site receives no payment from the companies it covers. The author refrains from any transaction in a stock covered 24 hours before and 48 hours after publication.
- MethodCompilation of public information from the day (sources listed above). The facts reported are kept separate from the analysis, which expresses the author's view. Full methodology.
- Artificial intelligenceText written with an artificial intelligence tool from the sources cited and published automatically, without prior human review.
- History
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