Jensen Huang Explores Return to Lead Nvidia, Corriere della Sera Reports
Jensen Huang is exploring a return to lead Nvidia just days after stepping down, backed by a network of Silicon Valley allies seeking White House support, Corriere della sera reported on Sunday.
The chip giant has lost 1.8 trillion dollars in market value since its October 6 peak, Euronews reported. Investors are now questioning whether the company can maintain its dominance in artificial intelligence following the sudden exit of its founder.
The push to reinstate Huang gained momentum over the weekend. Elon Musk and Tim Sweeney signed a public letter demanding that Huang be restored to his post, according to Corriere della sera. However, the move faces opposition from Treasury Scott Bessent, who called for a deep renewal of Nvidia’s management.
Huang resigned amid investigations into two extramarital relationships, Morningstar reported. The US Commerce Department began investigating Megaspeed.
Huang’s second relationship was with Kimberly Powell, an Nvidia manager who reported directly to the chief executive. Following these revelations, Morningstar reduced its fair value estimate for Nvidia from 310 dollars to 250 dollars. The firm cited management chaos and lowered long-term revenue projections in its ten-year discounted cash flow model.
CFO Colette Kress stepped in as interim CEO while the board searches for a permanent replacement. Bloomberg Intelligence Kunjan Sobhani said that Huang’s departure will likely not alter earnings estimates for fiscal 2027 and 2028, though succession and tighter export enforcement remain long-term risks.
Brokerage firms have adjusted price targets in response to the volatility. Baird and Bernstein lowered their targets to 200 dollars, while Citi cut its target to 225 dollars. Goldman Sachs maintained a buy rating and a 220-dollar target, pointing to the company’s existing product backlog.
It remains unclear whether the White House or Nvidia’s board will entertain the lobbying efforts of Huang’s Silicon Valley supporters. The Commerce Department continues its scrutiny of supply chain routes, and investors await further guidance from management on how the company will retain key engineering talent through the transition.