The Kobeissi Letter Urges Nvidia Board to Retain Jensen Huang

The Kobeissi Letter urged Nvidia’s board to retain founder and CEO Jensen Huang and give shareholders a voice in any decision, as the group linked the leadership question to a 35% share decline over 26 trading days.

The group said nearly half of the decline was tied to a recent scandal. It estimated that the possibility of Huang’s removal was about 80% reflected in Nvidia’s share price.

The appeal comes amid an Nvidia board inquiry into national security concerns raised in news coverage. The Kobeissi Letter urged directors to conduct a thorough inquiry and consult shareholders, including through a special meeting and an advisory vote.

To support its case, the group pointed to a study of 187 forced CEO departures at S&P 1500 companies. It characterized the study as showing negative long-term stock returns when boards removed high-performing CEOs, and argued that Huang’s case would be similar.

The Kobeissi Letter also cited Amazon’s decision to keep its CEO after an extramarital affair became public in 2019, saying the company’s shares rose 108% by 2021. The group said directors should distinguish personal misconduct from corporate wrongdoing while weighing the consequences of removing an executive it views as central to Nvidia’s success.