To The Moon

$NVIDIA(NVDA)$  has experienced one of its most unexpected setbacks. On Thursday, November 12, the stock plunged as much as 14.35% intraday following news that Jensen Huang had immediately resigned as president, CEO and director.

Although shares recovered some losses to close down 4.34%, the market reaction highlights how much confidence investors have placed in one individual.

Colette Kress, Nvidia’s long-serving CFO, has stepped in as interim CEO, while Harvey C. Jones has taken over as chairman. The board is now searching for a permanent successor.

For a company sitting at the centre of the global AI boom, this raises a much bigger question: Is Nvidia’s competitive advantage strong enough to survive without the person who built it?

I think investors need to look beyond the immediate share price reaction and consider what this leadership change could mean for Nvidia over the next several years.

1. Jensen Huang was more than just a CEO

Huang’s importance to Nvidia cannot be measured simply by his position in the company.

Since co-founding Nvidia in 1993, he has overseen its transformation from a graphics processing chip manufacturer into one of the world’s most important AI infrastructure companies.

His long-term decision to invest in GPU computing, CUDA software and accelerated computing helped Nvidia establish a position that competitors have struggled to challenge.

More importantly, Huang has been closely involved in communicating Nvidia’s technology roadmap and building relationships with major customers.

When companies such as Microsoft, Amazon, Google and Meta make enormous investments in AI infrastructure, confidence in Nvidia’s technology and long-term product direction matters.

The concern is not necessarily that Nvidia will suddenly lose its engineering capabilities. It is whether the company can maintain the same strategic direction, speed of execution and customer confidence during a leadership transition.

2. Nvidia’s biggest strength may also be its biggest weakness

One interesting aspect of Nvidia is that its competitive advantage does not depend on hardware alone.

Its GPUs are powerful, but its CUDA software ecosystem is equally important.

Developers and businesses have spent years building applications, software and infrastructure around Nvidia’s platform. Moving to another supplier is not always as simple as purchasing a different chip.

This creates significant switching costs and gives Nvidia an advantage over competitors.

However, the company must continue investing heavily in research and development to maintain that position.

AI technology is evolving quickly. New chip architectures, networking solutions and computing platforms are constantly being developed.

If a leadership transition slows product decisions or creates uncertainty around the technology roadmap, competitors could benefit.

The important distinction is that Nvidia’s existing competitive advantages remain, but maintaining them requires consistent execution.

3. Can Colette Kress maintain investor confidence?

Colette Kress is an important figure in Nvidia’s management team and has served as CFO since 2013.

Her experience gives her a detailed understanding of Nvidia’s financial performance, capital allocation and business operations.

However, investors will want to understand whether the interim leadership arrangement is temporary or whether she could become a longer-term candidate.

Running the financial side of a technology company and setting its long-term technology strategy are different responsibilities.

The board’s permanent CEO appointment will therefore be closely watched.

Investors will likely look for someone who can maintain Nvidia’s existing business relationships while continuing to invest in next-generation AI technologies.

A smooth transition could reduce uncertainty. A prolonged search or unclear succession plan could keep pressure on the stock.

4. Could AMD finally gain more market share?

AMD (AMD) is one of the companies worth watching during this period.

Its Instinct accelerator lineup provides an alternative to Nvidia’s GPUs, particularly for companies looking to diversify their AI hardware suppliers.

Major cloud providers also have an incentive to avoid depending entirely on one chip supplier.

Google has its own TPU platform, while Amazon has developed Trainium and Inferentia chips.

Microsoft and other large technology companies are also exploring customised silicon.

This does not mean Nvidia will immediately lose its dominant position.

Its software ecosystem, established customer relationships and integrated hardware and networking solutions remain substantial advantages.

However, even a relatively small shift in market share could become significant given the enormous size of the AI infrastructure market.

For investors, the question is not simply whether AMD can replace Nvidia. It is whether competitors can gradually reduce Nvidia’s pricing power and share of future AI spending.

5. The bigger question: Will hyperscalers continue spending?

Nvidia’s growth is closely connected to the capital expenditure plans of major technology companies.

Microsoft, Amazon, Alphabet and Meta have committed substantial resources to building AI infrastructure.

These companies are investing in data centres, GPUs, networking equipment and supporting infrastructure because they expect AI services to generate significant future revenue.

However, the investment cycle also creates risks.

If AI monetisation takes longer than expected, technology companies may eventually become more selective about their infrastructure spending.

If customers reduce orders or delay data-centre projects, Nvidia could face pressure even without any direct competitive threat.

This is why I would pay close attention to customer spending commitments rather than focusing only on Nvidia’s management changes.

A leadership transition becomes much more concerning if it happens alongside weakening customer demand.

6. Valuation matters more when uncertainty increases

Another important consideration is Nvidia’s valuation.

The market has historically assigned Nvidia a premium because of its rapid growth, strong profitability and leadership in AI computing.

But a premium valuation also means investors have high expectations.

When a company delivers strong results, the market may reward it. When uncertainty increases, even a fundamentally strong business can experience a significant valuation adjustment.

A 4.34% closing decline after an intraday fall of 14.35% shows how quickly sentiment can change.

I would avoid assuming that a large intraday recovery automatically means the selling pressure is over.

Investors should consider earnings growth, forward guidance, free cash flow and valuation together before deciding whether the current price offers an attractive entry point.

7. November 17 earnings could provide an important reality check

Nvidia’s upcoming fiscal Q3 2027 earnings announcement on November 17 will be particularly important.

Investors will be looking for several things:

• Data-centre revenue: Is demand for Nvidia’s AI infrastructure continuing to grow?

• Blackwell and next-generation products: Are product deliveries and customer adoption progressing as expected?

• Gross margins: Can Nvidia maintain strong profitability while expanding production?

• Customer demand: Are major cloud providers maintaining their spending plans?

• Management guidance: Can the leadership team provide a clear outlook and reassure investors about the transition?

The earnings report may not answer every question about the succession process, but it can help investors distinguish between concerns about management and changes in the underlying business.

8. What would make me more bullish or bearish?

I would become more constructive if Nvidia demonstrates that its operations remain stable, major customers continue placing orders and the board communicates a credible succession plan.

I would become more cautious if there are signs of delayed product launches, weakening customer commitments, declining margins or competitors gaining meaningful market share.

These are more important indicators than short-term share price movements.

A company can lose its founder without losing its competitive advantage. However, maintaining that advantage requires strong leadership and continued execution.

My investment view: Panic selling or buying the dip?

I don’t think investors should automatically sell Nvidia simply because Jensen Huang has resigned. The company’s technology, software ecosystem, engineering capabilities and customer relationships were built over decades.

They do not disappear overnight.

At the same time, I would not rush to buy simply because the stock has fallen sharply.

The market needs more clarity about the succession plan and whether the leadership transition will affect Nvidia’s long-term strategy.

For existing shareholders, watching the next earnings announcement and management updates may be more useful than reacting emotionally to daily price movements.

For investors considering a new position, a staged entry approach could help manage the risk of further volatility rather than committing all their capital at once.

Ultimately, Nvidia’s future will depend on whether it can turn its competitive advantages into continued earnings growth, regardless of who occupies the CEO position.

The biggest question is no longer whether Nvidia can dominate the current AI boom. It is whether the company has built an organisation strong enough to continue leading the next generation of AI without Jensen Huang.

For discussion purposes only.