'Don't Fire Jensen Huang': Why The Kobeissi Letter Says Nvidia's Board Could Regret It

The Kobeissi Letter has urged Nvidia's board of directors against removing Chief Executive Officer Jensen Huang, warning that his departure may have far-reaching consequences for the chipmaker, its shareholders and the broader artificial intelligence (AI) industry.

In a post on X, the financial markets commentary platform said there was no clear replacement for Huang and argued that removing an outperforming CEO could prove costly for the company.

"There is no clear replacement for Jensen Huang. We are confident that his departure would ultimately be a net negative for Nvidia, its shareholders, and the AI Revolution," The Kobeissi Letter said.

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Citing a study of 187 forced CEO departures at S&P 1500 companies, the platform said removing outperforming CEOs had historically resulted in negative long-term stock returns.

Our message to Nvidia's board: Do not fire Jensen Huang. There is no clear replacement for Jensen Huang. We are confident that his departure would ultimately be a net negative for Nvidia, its shareholders, and the AI Revolution. First, take a look at the data. History also suggests that removing a successful CEO will come with a significant cost. A study of 187 forced CEO departures from S&P 1500 companies found that removing outperforming CEOs resulted in negative long-term stock returns. This case would be no different, in our view. Jensen Huang is the definition of an outperforming CEO. Nvidia's board must not make a decision in the heat of the moment. The board should take the time to conduct a thorough investigation and consult with shareholders, with a strong emphasis on the latter. Quite literally, Nvidia's board should convene a special shareholder meeting and hold an advisory vote on this decision. This is the most consequential CEO controversy in world history. Shareholders deserve a say. In addition, Nvidia's stock, $NVDA, is now down -35% in 26 trading days, nearly half of which is a result of the recent scandal. We believe Jensen Huang's potential removal as CEO is now ~80% priced in. Why take an action with massive downside potential when the market has already priced in much of that risk? The downside of retaining Huang may be limited, while the potential upside is tremendous. Lastly, history shows that retaining Jensen Huang could still lead to a favorable outcome. In 2019, Amazon retained Jeff Bezos as CEO after his extramarital affair became public, and the company's stock subsequently surged +108% by 2021. Personal misconduct should not be ignored, but it must also be distinguished from corporate wrongdoing and weighed against the consequences of removing an executive who is instrumental to the company's success. We believe Jensen Huang is an irreplaceable part of Nvidia and the AI Revolution more broadly. Once the dust settles, firing Jensen Huang would prove to be a costly mistake. It is time to pause and consult your shareholders.

— The Kobeissi Letter (@KobeissiLetter) November 12, 2026

"Jensen Huang is the definition of an outperforming CEO. Nvidia's board must not make a decision in the heat of the moment," it added.

The Kobeissi Letter also called on the board to convene a special shareholder meeting and hold an advisory vote on Huang's future, arguing that investors should have a say in what it described as an unprecedented CEO controversy.

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The commentary comes as Nvidia shares have come under major pressure, with the stock declining approximately 35% from its October record high over 26 trading sessions, according to The Kobeissi Letter.

The platform argued that the market had already priced in much of the potential damage from Huang's removal, estimating that the possibility of his departure was around 80% reflected in the stock price.

"Why take an action with massive downside potential when the market has already priced in much of that risk?" it asked.

It further argued that retaining Huang could leave limited downside while offering substantial upside if the controversy eventually subsides.

Drawing a comparison with Amazon founder Jeff Bezos, The Kobeissi Letter cited the company's decision to retain him as CEO after his extramarital affair became public in 2019. Amazon shares subsequently surged 108% by 2021, it said.

"Personal misconduct should not be ignored, but it must also be distinguished from corporate wrongdoing and weighed against the consequences of removing an executive who is instrumental to the company's success," the platform said.

Why Did Nvidia Stock Fall In The After-Hours Trading?

Nvidia shares fell sharply in after-hours trading on Wednesday following reports concerning Huang's personal relationships and the board's deliberations over his future.

The Wall Street Journal reported that the board was preparing to remove Huang, while earlier reporting by The New York Times had raised questions about an alleged relationship with an Nvidia executive.

The developments followed earlier allegations involving Singapore-based businesswoman Alice Huang, who has been linked to suspected Chinese intelligence activities.

Nvidia's board initiated an independent investigation on November 8. The company said it had no reason to believe that US national security or its business secrets had been compromised.

The controversy has added to an already steep correction in Nvidia shares. The stock has lost approximately $1.7 trillion in market value from its October record.

The Kobeissi Letter, meanwhile, maintained that Huang remains an irreplaceable part of Nvidia's success.

"Once the dust settles, firing Jensen Huang would prove to be a costly mistake," it said.

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