Investors urge Nvidia board to consider Jensen Huang's return

Two major investors in Nvidia have urged the company's board to keep the possibility of Jensen Huang's return open, arguing that the chipmaker should not rush into appointing a permanent successor. Their appeal comes days after Huang stepped down as CEO and board member of the company he co-founded in 1993.

Tesla CEO Elon Musk has also backed the former Nvidia chief, warning that the company could lose important business agreements without his involvement. Musk said several of Nvidia's supply-chain arrangements depended on Huang's personal relationships rather than formal contracts.

Investors ask Nvidia board to keep options open

Altimeter Capital CEO Brad Gerstner and Atreides Management founder Gavin Baker have jointly written to Nvidia's board, seeking a measured approach to its leadership transition.

In his post on X, Gerstner said he had urged the board to “pursue a slow, measured, and deliberate process regarding the future leadership of Nvidia.”

The letter highlighted Huang's contribution to Nvidia's growth and cautioned against making a quick decision about his replacement while questions surrounding his departure remained under consideration.

“Given the extraordinary success of Jensen Huang's leadership over a long period of time and given the massive uncertainty associated with recent events surrounding his departure, we believe it is in the best interest of all stakeholders, and certainly the shareholders of Nvidia, for the Board to pursue a slow, measured, and deliberate process regarding the future leadership of Nvidia that leaves all options on the table, including the potential return of Jensen Huang,” the letter noted.

Gerstner also expressed confidence in interim CEO Colette Kress and the existing leadership team. However, the investors maintained that Huang deserved time and consideration before the board settled on a permanent successor.

“The Founder and long time incredible leader of this extraordinary company has earned the right for a deliberate process that avoids any needless rush to replace him before all the facts are known,” the letter noted.

Musk warns Nvidia could lose critical deals

Musk joined the discussion on Saturday, pointing to Huang's personal role in managing Nvidia's supply chain. He argued that several important business arrangements were built on trust and direct relationships with the former CEO.

In a post on X, Musk said Nvidia had been able to manage its supply chain "brilliantly" under Huang's leadership, but warned that some agreements could be difficult to retain without him.

He added that many such deals were "a handshake with Jensen, not a written contract."