NVIDIA founder Jensen Huang’s personal controversy has shaken the global AI supply chain. The company announced on November 12 that Huang had resigned as president, CEO, and a board member, ending his 33-year tenure at the helm.
According to Sina Finance, citing Securities Times, NVIDIA shares plunged more than 14% intraday after the announcement before recovering sharply to close down 4.34%; the company’s market capitalization fell below $4 trillion for the first time since July. Since Huang posted an apology letter on November 8, the stock has fallen 12.75% in five trading sessions.
Several funds and related institutions said the turmoil affects NVIDIA’s certainty premium as the global AI chip leader, not long-term demand for the global AI industry. They said the global computing-power landscape is being reshaped, with the supply chain potentially moving from one dominant player to broader participation and Chinese-developed computing capacity potentially due for revaluation.