The board wants to protect the company and distance itself from a person who could pose risks for Nvidia - independent financial expert and investor Maxim Ulyanov regarding the resignation of Jensen Huang, the head of the company.
For investors, this is a worrying situation that worsens the general information background surrounding the AI industry, says the financial expert. Nvidia is one of the beneficiaries of recent growth, and the market is already nervous about tech companies. The risks of a threat to national security that may exist in the company only intensify these concerns - and materialize in share sales.
As we see the panic and fears of investors, plus the unclear implications of the investigation in terms of a threat to US national security, the board is working to protect the company and distance itself from the person who could pose these risks to Nvidia. Essentially, it is an attempt to separate the company from the person and say: human error should not greatly affect the company.
Over the course of a month, Nvidia's value fell from an all-time high of $5.8 trillion to $4 trillion (as of November 10). Thus, the love affairs of the CEO deprived the company of almost 1.7 trillion dollars. Investors have previously filed a class-action lawsuit against Nvidia and Huang over the fact that the company concealed the risks associated with this relationship to US national security and business.