By Jeremy Phillips
Publication Date: 2026-11-09 01:07:00
Nvidia’s board opened an independent investigation of Jensen Huang on Sunday and said it has confidence in him. Here is what four past board reviews of a chief executive did to the stock on day 1, after a week, a…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
History says the board’s verdict matters more than the first day: in three cases where a board reviewed a chief executive’s personal conduct and the executive left, the shares fell the next trading day every time, by 2.4% to 10.1%, and sat below their starting price six months later; the one time a board looked at its founder and kept him, the stock rose 4.9% that day. Nvidia’s board said Sunday at 2:59 PM ET that it is opening an independent investigation into reports that Jensen Huang was the target of a foreign intelligence effort. The same statement says the board has confidence in Huang and that he is cooperating.
An independent investigation of the founder who runs a company reads as a warning about key-person risk, the one risk Nvidia’s rise never asked you to price; the limit is that the board says it has confidence in Huang, he is cooperating, and the precedent where the board kept its founder is the one where the stock went up.
What the board and Huang said
The board’s statement, released through…
