🚨 JENSEN HUANG IS LEAVING NVIDIA! AM I CHANGING MY VIEW ON THE STOCK?
$NVDA
In my previous post, I wrote that in my opinion, the market was significantly exaggerating the negative sentiment surrounding NVIDIA and its founder, Jensen Huang.
But today, major news broke. After 33 years, Jensen Huang is definitively stepping down as head of NVIDIA.
On November 12, the company officially announced his immediate departure from the roles of CEO, president, and board member.
Current CFO Colette Kress, who has been with NVIDIA since 2013, is becoming interim CEO. Harvey C. Jones has been appointed chairman of the board, and the company is beginning its search for a permanent successor.
I admit this is a more significant development than I expected when I wrote my previous post.
Does it change my long-term view of the company? Not for now.
NVIDIA is more than just Jensen Huang
I don't want to downplay the significance of his departure.
Huang was an extraordinary visionary who built one of the world's most important technology companies. His contributions are immense, and his departure clearly poses a risk.
But let's ask ourselves one simple question.
Will NVIDIA stop selling its chips tomorrow? Will its products lose their technological edge? Will the CUDA ecosystem stop working?
Of course not.
NVIDIA has enormous technological infrastructure, thousands of talented employees, strong customer relationships, and products that are now essential to building AI infrastructure.
None of that will disappear overnight just because one person is leaving.
Yes, Huang played an extraordinary role in the company's success. His departure could affect strategic decision-making, customer relationships, and future innovation. But these risks need to be assessed based on their actual impact on the business.
Now let's look at the fundamentals
NVIDIA's latest reported quarter delivered:
📈 Revenue of 96,2 billion USD, up 106 % year over year.
💰 Free cash flow of 21,3 billion USD in a single quarter.
🚀 Data Center segment revenue growth of 117 %.
📊 Gross margin of 75 %.
💵 Revenue guidance of approximately 108 billion USD for the next quarter.
These are extraordinary results.
And that's exactly why, despite the current sell-off, I'm still very optimistic about the company's long-term potential.
If NVIDIA continues to generate enormous cash flow, grow earnings, and maintain its technological dominance, I believe its fundamental value will continue to rise.
Of course, the low forward P/E of around 12 times is based on expected future earnings that the company still has to deliver. This is precisely where any slowdown in AI investment could create the biggest problem.
Why do I still see a buying opportunity?
At a price of approximately 160 USD, which I discussed in my previous post, NVIDIA looked extremely attractive to me.
Today's news clearly increases uncertainty, and I'm not surprised that investors are reacting with further selling.
But when I look at a three-to-five-year horizon, I still ask myself the same question:
Will NVIDIA be generating significantly more cash flow and higher earnings in five years than it is today?
My assumption is that it will.
Huang's departure does mean I'll be watching the new leadership, technology strategy, and, above all, the company's ability to meet its financial forecasts even more closely.
The results on November 17 will also be crucial, as we'll see whether the extraordinary pace of growth continues.
My conclusion
For now, I'm not making any major changes to my previous view.
I still think NVIDIA's current sell-off could be one of the most interesting long-term buying opportunities.
That doesn't mean the stock can't fall further. It certainly can. Nor does it mean Huang's departure can't have a negative impact on the business.
But as a long-term investor, I'm primarily interested in how much cash the company will be able to generate in the coming years.
The share price can change every day. But a company's fundamental value isn't determined solely by today's headlines.
I could be wrong, but I believe that in a few years we'll judge NVIDIA above all by its earnings and cash flow, not by today's controversy.
And as long as the fundamentals continue moving in the right direction, a further price drop could create an even more attractive investment opportunity.
💬 What do you think? Does Jensen Huang's departure change your investment thesis, or are you using the current sell-off to buy?
This is my personal investment opinion, not an investment recommendation.
