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Analysts believe that the funding and confidence pillars of the AI industry may be affected after Huang Renxun leaves Huida. However, Huida’s operating fundamentals may not deteriorate immediately due to its advantages in chips and ecosystem.
Huida (Nvidia, also translated NVIDIA) CEOJen-Hsun Huang It has grown the chip company and the entire AI ecosystem with advanced chips and creative financing deals that nourish the artificial intelligence (AI) supply chain. Analysts believe that after Huang Renxun resigns, the entire AI investment boom will be in danger.
Jen-Hsun Huang has faced scandals one after another, including suspected female spies and extramarital affairs with Huida subordinates. He faces investigation by US intelligence agencies, the US Congress and HUDA. The latest news is that Huang Renxun has resigned as CEO of Huida, and Chief Financial Officer Colette Cress will serve as interim CEO. Because Huang Renxun only owns 3% of Huida’s shares, and the company does not have a dual-class share structure that could give him control, many expected that his position as CEO would not be guaranteed.
After the AI industry representative resigned as CEO of Huida, Wall Street was left with two unanswered questions.
Question 1: What will be the fate of AI stocks popular in recent years?
MarketWatch reported that Annie Sen, managing partner of Bluebird Capital, said: “Whatever AI is today is because of him (Huang Jen-hsun).” She also said: “Nobody else has his vision.”
Monaghan, portfolio manager of the Founders 100 ETF, said: “Founders bring vision, execution and courage, and Jen-Hsun Huang is the perfect person. He is the chief engineer of the modern AI economy.”
As the AI boom unfolds, Huang Renxun has allowed Huida’s revenue to grow rapidly through proactive attacks and clever business transactions. Huida invests in its customers and suppliers, not only to sell more chips, but also to accelerate the development of AI. The company also pioneered the use of HUDA chips as mortgage loans.
Market analysts say that after Huang Renxun’s resignation, any successor will lack the market charisma Huang Renxun had before the scandal broke. Other executives are strangers to investors and less likely to be as active in using the creative financing arrangements that have fueled AI investment.
Huang Renxun’s supreme control has generated strong growth momentum for the Huida ecosystem, but it has also led to widespread scrutiny of his scandals and missteps. After Huang Renxun leaves Huida, his investments in component manufacturers Lumentum and Coherent, as well as AI model developers such as Anthropic and OpenAI may also change in the future.
After Huida gets a new CEO, its chip sales may be affected due to the new leader’s different approach. Sen believes that without capital investment from “AI central bank” Huida, AI stocks will face a huge decline in valuation multiples in the future.
She said: “That’s why Lumentum is rushing to finalize a deal with Marvell and why AnthroIPC is rushing to an IPO.” He believes that these companies are rushing to lock up the funds needed in the future, lest “Huida Bank” can no longer provide funds.
Question 2: What would Huida be like without Huang Renxun?
As for Huida, relying on the huge moat built by Huang Renxun for decades, it is expected to remain the leader in the AI industry. Competitors such as Advanced Micro Devices (AMD) and Broadcom (BROADCOM) will have to spend several years before closing the current gap behind HUDA.
Bernstein analyst Rui Sigong believes Huida’s business should remain largely unaffected, and its huge revenues are expected to continue expanding. It said in a note to clients that Huida’s stock was “extremely cheap.” Due to the potential investigation into Huang and Huida, he lowered his assessment of Huida’s stock from “outperform” to “in line with the market”.
Stewart, a fund manager at Sterling Capital Management, said: “Huida and Huang have built the world’s number one AI chip company. Not only do they have the best chips, they also have an ecosystem that is widely used by developers and other companies to promote AI development.” He believes that after Huang Renxun resigns, Huida’s fundamental principles and successful products and businesses “will not be affected.”
