China to Be the Main Beneficiary of Jensen Huang's Downfall
Analysts believe his departure could weaken U.S. leadership in AI and play into China's hands
According to a source from *The New York Times*, Nvidia's board of directors is considering the possible resignation of Huang following reports about his relationships with a subordinate and a woman identified as a potential Chinese spy. No official decision regarding the CEO's departure has been made yet.
Amid these reports, Nvidia's shares dropped by approximately 8% in after-hours trading. The company's market capitalization fell by over $300 billion—a figure described in the publication as the potential cost of losing the leader who transformed Nvidia into one of the key players in the AI market.
Bernstein Research analyst Stacy Rasgon warned that without an obvious successor, Huang's departure could make U.S. leadership in artificial intelligence less stable. He also lowered Nvidia's target share price from $400 to $200. In his assessment, China, which is actively developing its own AI capabilities, would be the primary beneficiary of such a situation.
Brad Gastwirth, head of global research at Circular Technology, expressed a similar view. He believes Huang's resignation could disrupt Nvidia's operations and create challenges for U.S. technological leadership.
The board of directors must simultaneously evaluate the accusations and the associated risks to the company. Analysts suggest that if the investigation does not uncover circumstances making Huang's continued leadership impossible, his dismissal could prove to be a strategic mistake.
