Personnel Change Takes Effect, Colette Kress Serves as Interim CEO
NVIDIA announced on the 12th that Jensen Huang has resigned as the company's president, CEO and board member, effective immediately. Current NVIDIA Executive Vice President and Chief Financial Officer Colette Kress has agreed to serve as interim CEO. The related storm has spread for five days, with Jensen Huang embroiled in controversy and drawing close attention. Wealth Media Chairman Hsieh Chin-ho said Taiwan's prosperity over the past three years was built to a considerable extent by Jensen Huang, and with Jensen Huang stepping down from the pedestal, the scenes of his approachable night-market visits and lavish trillion-dollar banquets may no longer be seen, quoting Jacky Cheung's song "Goodbye Kiss" lyric about past events vanishing like smoke to describe uncertainty over when Jensen Huang will be seen again.
Stock Retreats From High, Market Value Evaporates by 2.279 Trillion USD
Hsieh Chin-ho said NVIDIA shares fell intraday to a low of 148.8 USD, leaving a market value of 3.586 trillion USD, compared with the September 6 high of 243.37 USD and a market value of 5.865 trillion USD, meaning the storm wiped out 2.279 trillion USD in market value, about NT$74.75 trillion. He described the storm as sudden and fierce, adding that the outside world is more concerned about what the future of AI will be without Jensen Huang and how large the impact on Taiwan will be. Some online posts have shared graphics compiling worries about NVIDIA over the past year and more, one of which is that Jensen Huang's excessive focus on the China market could expose NVIDIA to major risk.
AI Controls May Tighten, Supply-Chain Impact to Be Assessed
Hsieh Chin-ho noted that questions about Jensen Huang began when he wore a Tang suit. Adapting to local customs was originally understandable, but a closer look at his attitudes toward both sides of the strait reveals subtle clues. The AI supply chain he built is concentrated in Taiwan, and Taiwan has become great because of AI, yet no photos of him with President Tsai Ing-wen or President Lai Ching-te have been seen, suggesting he observes Beijing's taboos and showing his political sensitivity. In a new era when the United States and China compete with AI as national strength, he and Elon Musk were the only two red-top businessmen favored by Trump, and Jensen Huang repeatedly emphasized that blocking China from chips would help China break through on its own, even once saying Chinese AI could surpass that of the United States before later walking it back.
Hsieh Chin-ho analyzed that the incident occurred after the November 3 U.S. midterm elections and looks like the U.S. Guojian establishment preparing to clear out those around the leader, moving from the New York Times leaking the news to admitting the relevant circumstances and then resigning, with a congressional investigation likely to follow, so the impact on Taiwan may continue to ripple. Past underground chip transshipment hubs in Southeast Nanya Asia may be shut down, Singapore's role has changed, and Anwar's Malaysia will be greatly affected. From Penang to Johor this year, Malaysia has looked like a new AI base, with China's data centers built in Johor, and Alibaba's sharp share-price plunge in recent days may be reflecting this negative news. TSMC ADR remains above 400 USD, stronger than expected, and the impact on Taiwan's supply chain still needs to be assessed slowly. U.S. AI controls will definitely become stricter, and many Taiwanese companies straddling both sides will surface one after another. Over the years, many business figures have said politics is politics and economics is economics, but in the end politics decides economics, and if the two sides of the strait remain hostile, the foundation for business may be shifting sand.