Matt Frankel, CFP®, The Motley Fool
5 min read
Nvidia (NASDAQ:NVDA) shares fell to roughly $165 this week, after the company announced that co-founder Jensen Huang had resigned as president and CEO, effective immediately. He also left the board. CFO Colette Kress will serve as the interim CEO of the tech giant, while the board searches for a permanent replacement. The search will include both internal and external candidates.
The SEC filing announcing Huang’s resignation doesn’t give a reason, but the board was reportedly considering ousting Huang over several recently revealed personal conduct issues, including reports of an affair with a woman whom U.S. intelligence officials reportedly suspected of working for Chinese intelligence, allegations China has denied. I won’t rehash the recent news too much, but wanted to focus on one question that is likely on many investors’ minds. After the recent drop, Nvidia trades about 33% below its all-time high, set less than six weeks ago. Is this a buying opportunity?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Nvidia.
Nvidia’s business hasn’t changed
Nvidia’s board says it expects operations, customer commitments, and the product roadmap to continue without interruption. And to put it mildly, Nvidia’s business is in great shape. In the second quarter of fiscal 2027, revenue rose 106% year over year to $96.2 billion, and data center revenue jumped 117%. Management guided for about $108 billion in third-quarter revenue.
Speaking of third-quarter revenue, Nvidia is set to report its latest results on Tuesday (Nov. 17) after the market’s close, and its leadership will hold its conference call at 5 p.m. ET. So, we’ll have updated numbers in the very near future.
A big leadership shake-up
Of course, Huang wasn’t just any CEO. He co-founded Nvidia and led it for more than three decades, and its early bet on AI computing was largely his vision. He was the face of Nvidia’s success and arguably the public face of the entire AI boom.
Nvidia’s board moved quickly to fill the gap. CFO Colette Kress is now serving as interim CEO and will keep her CFO duties until the board names a permanent leader. Kress has led Nvidia’s finance organization since 2013, and before that she spent nearly 25 years in finance roles at technology companies such as Cisco (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT).
