Jensen Huang's exit after 33 years challenges Nvidia's 80 per cent AI chip dominance, giving rivals like AMD and custom cloud chips new openings.

<p>With Nvidia controlling roughly 80 per cent of the AI chip market, Jensen Huang's resignation after 33 years could reshape global semiconductor competition.</p>

How Jensen Huang's resignation could change the global AI chip war

Jensen Huang's exit after 33 years exposes five major AI industry risks, including a potential 30 per cent Nvidia valuation drop, disrupted startup funding loops, and Asian chip supply chain shocks.

<p>On November 12, 2026, Nvidia announced that co-founder Jensen Huang resigned as president, chief executive officer, and board member after 33 years, with chief financial officer Colette Kress named interim CEO and Harvey C. Jones appointed board chair. While Nvidia stated its product roadmap will continue without interruption, Huang's sudden exit exposes five major structural risks across global stock markets, venture funding loops, and Asian chip supply chains.</p>

Nvidia without Jensen Huang: 5 risks that could shake the AI industry

<p>Jensen Huang may have been ousted as Nvidia CEO by the time you read this. But some analysts argue he should not be fired over his extramarital affair with alleged Chinese spy Alice Huang, warning it would create more problems than it solves. Nvidia's board is meeting on Wednesday (Nov 12) to decide Huang's future. Under Nvidia's bylaws, the 11-member board can remove him by a simple majority. No decision had been announced at the time of writing. Meanwhile, reports emerged that Jensen had a second affair, with Nvidia healthcare executive Kimberly Powell.</p><h2>Forced ousters of CEOs: Bad for business?</h2><p>The Kobeissi Letter shared an analysis on X showing that forced CEO ousters have not helped the companies involved. Several industry observers, investors, venture capitalists and commentators share the same view. It urged the board not to fire Huang, mainly because there is no clear replacement, arguing he is irreplaceable to Nvidia's AI leadership.&nbsp;</p><p>It cited a study of 187 forced CEO departures from S&amp;P 1500 firms, which found that removing overperforming leaders led to negative long-term stock returns.&nbsp;</p><p>It also noted that Amazon retained Jeff Bezos as CEO after his affair became public in 2019, and the company's stock rose 108 per cent by 2021. It warned against hasty action over personal misconduct.</p><p>It noted that Nvidia stock had fallen 35 per cent in 26 trading days, nearly half of it due to the scandal, and that Huang's removal was now about 80 per cent priced in.&nbsp;</p><p>Given the stakes for Nvidia and the AI sector, it called for a special shareholder meeting with an advisory vote.</p><p>Also read: <a href="https://www.wionews.com/world/months-before-jensen-huang-affair-a-short-seller-bet-against-nvidia-stock-over-china-problem-he-was-not-the-only-one-who-had-doubts-1794467479350">Months before Jensen Huang affair, a short seller bet against Nvidia stock over 'China problem'. He was not the only one with doubts</a></p><h2>Lack of a clear successor could be a problem for Nvidia</h2><p>Dan Ives of Yorkville Ives, a prominent tech analyst, called Huang the "core DNA of Nvidia and its AI success" and said he is not replaceable. He described Huang as the "central nervous system" of the broader American tech and AI ecosystem, and estimated Nvidia could lose 25 to 30 per cent of its market value if Huang exits.</p><p>Ben Thompson, an independent tech analyst, wrote that without evidence of a clear betrayal of US interests, "it is in the interests of the US that Huang continue to be CEO of Nvidia."</p><p><a href="https://www.wionews.com/videos/china-uses-honey-trap-to-steal-hi-tech-secrets-how-alice-huang-targeted-nvidia-ceo-huang-1794243555660/embed">https://www.wionews.com/videos/china-uses-honey-trap-to-steal-hi-tech-secrets-how-alice-huang-targeted-nvidia-ceo-huang-1794243555660/embed</a></p><h2>‘Ousting Huang would benefit China’</h2><p>Gavin Baker, managing partner at Atreides Management, who has known Huang for nearly 30 years, said he does not believe Huang would knowingly disadvantage the US or Nvidia. He has argued that Huang's push to export less powerful AI chips to China serves US national security, and that removing him could ultimately benefit China.</p><p>Stacy Rasgon, senior analyst at Bernstein Research, said shareholders and boards do not want Huang to step down. Bernstein analysts described Nvidia as "not an ordinary company and Jensen is not an ordinary CEO; he IS Nvidia", noting he sets long-term strategy and directs most key decisions.</p><p>Shaun Maguire, a partner at Sequoia Capital and an early Nvidia investor, said Huang "did something incredibly dumb" but remains "irreplaceable for America's AI leadership". &nbsp;Elon Musk endorsed the post.&nbsp;</p><p>Maguire cautioned against actions that would "nuke our AI industry because China ran a successful intel op."</p><p>Also read: <a href="https://www.wionews.com/world/who-is-kimberly-powell-nvidia-vp-jensen-huang-allegedly-had-an-affair-with-1794452611809">Who is Kimberly Powell, the woman Jensen Huang allegedly had a second affair with?</a></p><h2>Nvidia stock will bleed further if Huang is ousted</h2><p>Investor Michael Monaghan called Huang irreplaceable and indicated his firm would sell Nvidia shares if he exits.</p><p>Semiconductor analyst Jay Goldberg said there is "no ready alternative" to Huang and that his departure would disrupt Nvidia's decision-making.</p><h2>The real problem is Huang's outsized role at Nvidia</h2><p>These views stem from Huang's hands-on approach and outsized role at Nvidia, where he has dozens of direct reports. Before the scandal broke, he enjoyed rock-star status as the public face of the AI boom. Observers point to the lack of a succession plan or a ready internal candidate.</p><p>This will compound matters, particularly if investigations uncover no clear corporate or national-security wrongdoing beyond personal misconduct. And spy cases are rarely resolved conclusively.</p>

Nvidia’s board is weighing the ouster of its CEO Jensen Huang over his affair with alleged Chinese spy Alice Huang. But several observers and experts say he is irreplaceable for the AI chip firm, and for the future of the wider American AI industry.

Jensen Huang may have been ousted as Nvidia CEO by the time you read this. But some analysts argue he should not be fired over his extramarital affair with alleged Chinese spy Alice Huang, warning it would create more problems than it solves. Nvidia's board is meeting on Wednesday (Nov 12) to decide Huang's future. Under Nvidia's bylaws, the 11-member board can remove him by a simple majority. No decision had been announced at the time of writing. Meanwhile, reports emerged that Jensen had a second affair, with Nvidia healthcare executive Kimberly Powell. Forced ousters of CEOs: Bad for business? The Kobeissi Letter shared an analysis on X showing that forced CEO ousters have not helped the companies involved. Several industry observers, investors, venture capitalists and commentators share the same view. It urged the board not to fire Huang, mainly because there is no clear replacement, arguing he is irreplaceable to Nvidia's AI leadership. It cited a study of 187 forced CEO departures from S&P 1500 firms, which found that removing overperforming leaders led to negative long-term stock returns. It also noted that Amazon retained Jeff Bezos as CEO after his affair became public in 2019, and the company's stock rose 108 per cent by 2021. It warned against hasty action over personal misconduct. It noted that Nvidia stock had fallen 35 per cent in 26 trading days, nearly half of it due to the scandal, and that Huang's removal was now about 80 per cent priced in. Given the stakes for Nvidia and the AI sector, it called for a special shareholder meeting with an advisory vote. Also read: Months before Jensen Huang affair, a short seller bet against Nvidia stock over 'China problem'. He was not the only one with doubts Lack of a clear successor could be a problem for Nvidia Dan Ives of Yorkville Ives, a prominent tech analyst, called Huang the "core DNA of Nvidia and its AI success" and said he is not replaceable. He described Huang as the "central nervous system" of the broader American tech and AI ecosystem, and estimated Nvidia could lose 25 to 30 per cent of its market value if Huang exits. Ben Thompson, an independent tech analyst, wrote that without evidence of a clear betrayal of US interests, "it is in the interests of the US that Huang continue to be CEO of Nvidia." https://www.wionews.com/videos/china-uses-honey-trap-to-steal-hi-tech-secrets-how-alice-huang-targeted-nvidia-ceo-huang-1794243555660/embed ‘Ousting Huang would benefit China’ Gavin Baker, managing partner at Atreides Management, who has known Huang for nearly 30 years, said he does not believe Huang would knowingly disadvantage the US or Nvidia. He has argued that Huang's push to export less powerful AI chips to China serves US national security, and that removing him could ultimately benefit China. Stacy Rasgon, senior analyst at Bernstein Research, said shareholders and boards do not want Huang to step down. Bernstein analysts described Nvidia as "not an ordinary company and Jensen is not an ordinary CEO; he IS Nvidia", noting he sets long-term strategy and directs most key decisions. Shaun Maguire, a partner at Sequoia Capital and an early Nvidia investor, said Huang "did something incredibly dumb" but remains "irreplaceable for America's AI leadership". Elon Musk endorsed the post. Maguire cautioned against actions that would "nuke our AI industry because China ran a successful intel op." Also read: Who is Kimberly Powell, the woman Jensen Huang allegedly had a second affair with? Nvidia stock will bleed further if Huang is ousted Investor Michael Monaghan called Huang irreplaceable and indicated his firm would sell Nvidia shares if he exits. Semiconductor analyst Jay Goldberg said there is "no ready alternative" to Huang and that his departure would disrupt Nvidia's decision-making. The real problem is Huang's outsized role at Nvidia These views stem from Huang's hands-on approach and outsized role at Nvidia, where he has dozens of direct reports. Before the scandal broke, he enjoyed rock-star status as the public face of the AI boom. Observers point to the lack of a succession plan or a ready internal candidate. This will compound matters, particularly if investigations uncover no clear corporate or national-security wrongdoing beyond personal misconduct. And spy cases are rarely resolved conclusively.

<p>Nvidia’s board is weighing the ouster of its CEO Jensen Huang over his affair with alleged Chinese spy Alice Huang. But several observers and experts say he is irreplaceable for the AI chip firm, and for the future of the wider American AI industry.</p><p>&nbsp;</p>

Should Jensen Huang be fired as Nvidia CEO? Some observers think it will help China, leave a leadership vacuum

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How Jensen Huang's resignation could change the global AI chip war

Nvidia without Jensen Huang: 5 risks that could shake the AI industry

Should Jensen Huang be fired as Nvidia CEO? These people think not