Nvidia Drops 4% as Cramer Warns Investors to Brace for a Jensen Huang Exit
Updated
Updated · CNBC · Nov 9
Nvidia Drops 4% as Cramer Warns Investors to Brace for a Jensen Huang Exit
3 articles · Updated · CNBC · Nov 9
Summary
Nvidia shares fell more than 4% Monday, extending a one-month slide to about 22%, after Jim Cramer said investors should consider a future in which CEO Jensen Huang no longer leads the company.
The warning followed news that Nvidia's board is investigating Huang over an extramarital affair with Megaspeed's Alice Huang, who U.S. intelligence agencies suspect of spying for China.
Cramer said Nvidia's business and product roadmap remain strong, and he stopped short of urging a sale, arguing the company could still perform without its founder much as Apple did after Steve Jobs.
He added that Nvidia faces a second risk: resistance to new data centers and tighter financing for neocloud customers such as CoreWeave, Nebius and Iren could curb chip demand and leave growth more dependent on Amazon and Microsoft.