Jensen Huang is out at Nvidia. The AI trade rotates — it doesn't end.
Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.
Big headline out of the US today: Nvidia CEO Jensen Huang has resigned, effective immediately, amid an ongoing investigation (per Seeking Alpha reports). CFO Colette Kress steps in as interim CEO.
Why this is rotation, not the end of the AI trade:
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Hyperscaler chip orders are locked in months in advance, so Nvidia's near-term demand and earnings outlook stays intact regardless of who sits in the CEO chair.
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What changes is the risk premium. NVDA trades at ~17.4x forward earnings vs a ~28.2x sector median — the debate now is how much leadership uncertainty gets priced in with no permanent successor named.
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Expect capital to rotate within AI rather than leave it: AMD and Broadcom are the natural beneficiaries, and volatility likely stays elevated into year-end.
With the above pointers, the price of $NVIDIA(NVDA)$ in the “buy” zone, and showing a great rebound after the pre-market sell off, I opened x 2 contracts of NVDA 27 Feb 2027 180/185 Buy Call spreads @ $1.67db each. It is a relatively long expiry, but I foresee a significant votality towards end of 2026, and meaningful rebound to happen in 2027.[Tongue]
@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]
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