Key Takeaways
- • Nvidia's board was meeting late on Wednesday to decide on CEO Jensen Huang's future after reports of two extramarital affairs, a sharp shift from Sunday, when the board had expressed confidence in him, according to Reuters.
- • Suppliers across Asia, including Taiwan's TSMC, Foxconn and Wistron and South Korea's SK Hynix and Samsung Electronics, are reportedly redrawing plans in case Huang is ousted.
- • Huang has never named a successor; analysts and investors see Ian Buck (chief engineer) and CFO Colette Kress as the most likely candidates for the short term.
- • Analysts warn a leadership change could slow Nvidia's aggressive ecosystem investments and bilateral AI infrastructure deals, though a portfolio manager at Minotaur Capital argued near-term shipments and customer spending are largely locked in.
- • In May, Huang said Nvidia planned to invest about $150 billion a year in Taiwan, and Nvidia and SK Group are pursuing an AI initiative valued at about $500 billion.
Summary
Nvidia's partners and suppliers across Asia are redrawing plans in case Chief Executive Jensen Huang is ousted over reports of two extramarital affairs, according to Reuters. The chip giant's board was meeting late on Wednesday to decide on Huang's future, a sharp change in tone from Sunday, when it had expressed confidence in him and his leadership team.
An executive at a Taiwan supplier, who spoke on condition of anonymity, said the company would support whatever capacity Nvidia needs but warned that "the new CEO may not be as aggressive as Jensen," and that the company's expansion could slow if a successor was not as quick to tie up manufacturing capacity. Huang has built a strong supplier network in Taiwan through frequent visits to partners including TSMC, Foxconn and Wistron. In May he said Nvidia planned to invest about $150 billion a year in Taiwan. Shares in TSMC fell 2%, SK Hynix dropped 1.6% and Samsung Electronics rose 0.8%. TSMC, SK Hynix and Samsung did not immediately respond to requests for comment.
Huang has never anointed a successor, but analysts and investors see Nvidia's Ian Buck and Chief Financial Officer Colette Kress as the likeliest candidates, at least for the short term. Neil Shah, vice president of research at Counterpoint Research, said that without Huang, the company would likely see a slowdown in new, aggressive ecosystem-level investments and lucrative bilateral AI infrastructure deals. Under Huang, Nvidia's cash pile has been deployed as a war chest to fund companies ranging from AI cloud providers and suppliers to leading AI labs.
In South Korea, companies that supply high-bandwidth memory for Nvidia's AI chips are assessing what a leadership change could mean for their ties with the US firm. Nvidia and SK Group are pursuing an AI initiative covering large-scale data centres and next-generation chips valued at about $500 billion. Huang has also extended partnerships into robotics and AI factories. Omdia chief analyst Lian Jye Su said a change could shift Nvidia's long-term direction and give rivals room to catch up if execution slows. Reuters also reported that Chinese AI companies are seeking overseas access to Nvidia chips, concerned Washington could tighten curbs on remote access to advanced processors.
Some investors take a more measured view. Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, which holds Nvidia shares, said that the chips Nvidia will ship over the next year or two are already designed and in production, and that customers' 2027 spending plans do not depend on who runs the company.
An executive at a Taiwan supplier, who spoke on condition of anonymity, said the company would support whatever capacity Nvidia needs but warned that "the new CEO may not be as aggressive as Jensen," and that the company's expansion could slow if a successor was not as quick to tie up manufacturing capacity. Huang has built a strong supplier network in Taiwan through frequent visits to partners including TSMC, Foxconn and Wistron. In May he said Nvidia planned to invest about $150 billion a year in Taiwan. Shares in TSMC fell 2%, SK Hynix dropped 1.6% and Samsung Electronics rose 0.8%. TSMC, SK Hynix and Samsung did not immediately respond to requests for comment.
Huang has never anointed a successor, but analysts and investors see Nvidia's Ian Buck and Chief Financial Officer Colette Kress as the likeliest candidates, at least for the short term. Neil Shah, vice president of research at Counterpoint Research, said that without Huang, the company would likely see a slowdown in new, aggressive ecosystem-level investments and lucrative bilateral AI infrastructure deals. Under Huang, Nvidia's cash pile has been deployed as a war chest to fund companies ranging from AI cloud providers and suppliers to leading AI labs.
In South Korea, companies that supply high-bandwidth memory for Nvidia's AI chips are assessing what a leadership change could mean for their ties with the US firm. Nvidia and SK Group are pursuing an AI initiative covering large-scale data centres and next-generation chips valued at about $500 billion. Huang has also extended partnerships into robotics and AI factories. Omdia chief analyst Lian Jye Su said a change could shift Nvidia's long-term direction and give rivals room to catch up if execution slows. Reuters also reported that Chinese AI companies are seeking overseas access to Nvidia chips, concerned Washington could tighten curbs on remote access to advanced processors.
Some investors take a more measured view. Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, which holds Nvidia shares, said that the chips Nvidia will ship over the next year or two are already designed and in production, and that customers' 2027 spending plans do not depend on who runs the company.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.