Jensen Huang’s Potential Nvidia Exit: Morningstar Flags Risks to AI Dealmaking and Financing

AI dealmaking and financing could weaken if Jensen Huang leaves Nvidia. Morningstar warned that the CEO’s departure could reverberate across the artificial intelligence industry. With both Huang and Nvidia central to the AI ecosystem, his exit could mean fewer transactions, reduced financing, stricter regulation and more intense political opposition to artificial intelligence.

Nvidia’s reach across global AI funding, technology and supply chains explains why the risks extend to the wider industry. Its role goes beyond supplying chips to AI companies worldwide: it also invests throughout the sector’s value chain, including in OpenAI, Anthropic, xAI, CoreWeave and Nebius. More than $500 billion in funding is intended to be mobilised over time under preliminary agreements Nvidia signed in August this year with institutions including BlackRock, Blackstone, Brookfield and Goldman Sachs. Up to a quarter of that amount could be supported by Nvidia, Huang said previously. Any serious leadership crisis could thus expose not just Nvidia but also the many businesses relying on its chips, investments and financing support.

$310 per share remains Morningstar’s fair value estimate for Nvidia. It also kept its four-star rating despite uncertainty about Huang’s future, indicating that it sees the stock as undervalued at current levels. In Morningstar’s assessment, AI computing demand remains above available supply. The firm does not anticipate any impact from the investigation on Nvidia’s near- or medium-term revenue.

Huang admitted infidelity in a letter circulated internally to all employees on 8 November. He apologised to his family, employees, the board, partners and shareholders. The woman involved in the affair was alleged in reports to be an asset of a foreign intelligence agency. On that same day, Nvidia’s board announced that independent directors would form a special committee to investigate whether a foreign intelligence operation had targeted Huang. Independent external legal counsel would assist the committee. Although the board currently had no reason to believe national security interests or Nvidia’s core business secrets had been compromised, it said the investigation would review all available information.

Existing business plans will continue uninterrupted, with Huang staying on as CEO. Nvidia’s head of public policy communications stressed that the developments would not delay the company’s progress. Huang will carry out the full duties of CEO until final conclusions are reached by the independent investigation.

Market Insight: Huang’s Leadership Standing

Few executives can match Huang’s advantages. Nvidia has developed into one of the world’s most important AI chip suppliers under his leadership since he co-founded it in 1993. The achievements and reputation accumulated over that period could be vital to his ability to withstand the crisis. Yet that trust could unravel quickly if the investigation determines that he knowingly ignored the risks or crossed fundamental boundaries involving company security and corporate governance.