Odaily reports: Nvidia (NVDA.O) shares have fallen sharply recently, with its forward P/E ratio dropping to about 12x, the lowest level since 2012. After Jensen Huang's resignation, Nvidia shares fell more than 4% on Thursday, bringing the cumulative decline this week to about 11% and a drop of more than 30% from the all-time high set on October 6. In addition to the management change, the market is also concerned that AI data center construction may slow. Nvidia Chief Financial Officer Colette Kress is currently serving as interim CEO, and the company is searching for a permanent successor. Analysts are still maintaining expectations for Nvidia's strong earnings growth, anticipating that chip demand will continue to outpace supply.
The market expects Nvidia's October-quarter revenue to grow 92% year over year, with net profit exceeding $60 billion, up 89% year over year. Nvidia will report earnings next Tuesday, and investors will focus on Kress's comments on the company's future performance outlook, as her guidance may draw more attention than the earnings report itself.
Odaily reports: NVIDIA (NVDA.O) interim CEO and Chief Financial Officer Colette Kress has previously raised objections multiple times to the high-risk deals pushed by Jensen Huang. People familiar with the matter say Kress may adopt a more cautious business strategy than Jensen Huang. She previously opposed NVIDIA's plan to provide up to $250 billion in credit support to OpenAI; the deal was ultimately split, and NVIDIA currently only committed to providing approximately $100 billion in credit support. With data center projects delayed and cloud computing deals canceled, Kress had already begun diversifying NVIDIA's financial risk exposure to a small number of customers. NVIDIA had previously provided more than $100 billion in financial support to customers and supply chain partners, including investments and credit guarantees. After Huang's departure, some investors are concerned that the company may tighten financing support. One cloud service provider has already considered switching to Google or AMD chips.
In addition, Kress also needs to address challenges such as customers diversifying their procurement, tightening U.S. export controls, and internal power adjustments within the company. The report noted that she had previously disagreed with Jensen Huang, as well as his daughter and son-in-law, on company matters. (The Information)
According to the financial report released by Gemini (GEMI), the company's total revenue for the third quarter was $40.9 million, down 19% year-over-year; platform trading volume fell from $16.4 billion in the same period last year to $4.5 billion, and exchange revenue dropped 47% year-over-year to $13.4 million. Net loss for the quarter narrowed 63% year-over-year to $58.6 million, and total operating expenses decreased 30% year-over-year to $119.9 million. Service revenue and interest income combined totaled $23.3 million, accounting for 59% of net revenue. (Globenewswire)
Odaily reports: Prediction market platform Kalshi has ended its advisory relationship with Donald Trump Jr. A Kalshi spokesperson stated that discussions between the two parties began in August, and the decision was made after his investment firm 1789 Capital made a large investment in competitor Polymarket. The decision was mutual and did not involve political considerations.
Two people familiar with the matter said that some within Kalshi had concerns that if Democrats win both chambers of Congress in the midterm elections, it could impact the company. (Cointelegraph)
Odaily News: According to a Reuters report on November 12, NVIDIA founder Jensen Huang, in addition to the previously disclosed relationships, also had an extramarital affair with another NVIDIA employee. Reuters did not disclose the identity of this employee.
Odaily reports: Tom Lee posted on X regarding Jensen Huang's departure, stating that the departure of a founder and CEO is a major test for any company, but Nvidia is still expected to maintain its industry-leading position, citing its technological advantages in chip design, supply chain control, and the CUDA ecosystem, as well as its deep bench of engineering talent.
Tom Lee also noted that Nvidia has a strong employee ownership culture, with approximately 80% of employees holding million-dollar-level wealth, of which 50% hold company stock worth more than $25 million, giving employees a strong incentive to safeguard the company's market-leading position. In addition, Nvidia generates substantial free cash flow, which can support its share price through stock buybacks.
He believes that Huang's departure could put pressure on the stock price in the short term, but at roughly 10x forward P/E, Nvidia is currently one of the most attractive investment targets in AI on a risk-reward basis.
Odaily: Financial market research firm Vanda reports that retail investors net bought $111 million worth of Nvidia (NVDA.O) stock within the first half hour after the market open, marking the largest retail net buying on record for the stock during the opening period.
Odaily: U.S. President Trump: Jensen Huang has done an excellent job, but he has resigned, and now only one person can take his place—Apple's (AAPL.O) Cook. (Jinshi)
Odaily Report: According to Reuters, an internal memo shows that NVIDIA (NVDA.O) interim CEO Kress said the company will hold an all-hands meeting at 9 a.m. Pacific Time on November 18 (1 a.m. Beijing Time the following day). (Jinshi)
Odaily: Nvidia (NVDA.O) announced today that Jensen Huang is stepping down as President, Chief Executive Officer, and board member, effective immediately. Harvey C. Jones has been appointed as the company's first Board Chair. Jones has served as Managing Partner of private investment firm Square Wave Ventures since 2004, bringing over 30 years of experience in entrepreneurship, high-tech enterprise management, and venture capital. In 1981, he co-founded computer-aided engineering company Daisy Systems, ultimately serving as its President and CEO until 1987.
From 1987 to 1998, he led major electronic design automation company Synopsys, serving as CEO for seven years and then as Executive Chairman. In 1997, Jones co-founded private technology IP company Tensilica, which specialized in developing and licensing high-performance embedded processor cores.
Jones served as Chairman of the Tensilica board from the company's founding until it was acquired by Cadence Design Systems in 2013. Jones holds a bachelor's degree in Mathematics and Computer Science from Georgetown University and a master's degree in Management from MIT. He joined Nvidia's board of directors in 1993. (Jinshi)
Odaily News: NVIDIA (NVDA.O) announced that CEO Jensen Huang has resigned from his positions as President, Chief Executive Officer, and member of the Board of Directors, effective immediately. (Jinshi)
Odaily: As Nvidia's board meets Thursday to decide the fate of CEO Jensen Huang, the company's debt default insurance costs have risen. According to ICE Data Services, the cost of Nvidia's five-year credit default swaps (CDS) rose as much as 3.25 basis points to 1.445% per year, approaching the intraday high set on November 3. Although this cost has more than tripled since mid-year, it remains only about half that of lower-rated hyperscale cloud computing companies SpaceX and Oracle.
According to a person familiar with the matter, after Jensen Huang was revealed to have had multiple extramarital affairs, Nvidia's board has been working with an external firm to identify potential CEO successors. The board is considering appointing an interim CEO while it searches for a permanent successor.
Odaily: US initial jobless claims for the week ending November 7 were 200,000, versus expectations of 195,000. The previous reading was revised to 191,000 from 189,000. (Jinshi)
Odaily: In his latest post, U.S. President Donald Trump said: "I have asked Vice President Vance to focus all of his energy on the massive corruption and criminal activity taking place in Democrat-run cities and states all across America. The badly run and highly corrupt Democrat-run states of Minnesota, California, Illinois, and others, are a disaster. Billions of Dollars are being stolen every month. If we correct this massive criminal activity, our Budget will be balanced, quickly. The corruption is in the blood of the Democrat leadership! We don't need a deal with Iran right now, that time is long gone. We have their money in the hundreds of billions of dollars, and we have their strait! Thank you for your attention to this matter." (Jinshi)
