Nvidia's Jensen Huang dilemma is a test of the AI industry's dependence on one flawed man

By Mark DeCambre

Huang's exit could fray tight bonds among AI businesses. Plus, Oracle's potential AI catalyst, a $1.5 trillion Social Security stock proposal and what the oil-yield split may mean for inflation.

Here's what I'm thinking about this morning: entanglements.

Jensen Huang helped build Nvidia into the company at the center of the AI boom, and became the defining face of it. Now the board is moving to replace the man other executives affectionately call the "Godfather of AI."

Reports of two extramarital affairs have surfaced in less than a week - one involving a woman U.S. officials suspect of working for Chinese intelligence and the latest involving an Nvidia executive who reports to Huang. This is no ordinary Wall Street or Silicon Valley fall from grace.

Replacing Huang isn't simply a matter of finding another talented CEO. He has forged relationships with customers, investors and world leaders, and helped broker deals fueling the AI buildout. He has become inextricably linked to the company he helped to found decades ago.

His departure will force the industry to confront how much of the future of Nvidia, and of the AI industry as a whole, is tied to one man.

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Tech analyst Dan Ives cut Nvidia's price target to $225 from $300, with the assumption that Huang is removed as CEO. He retains his outperform rating on the company because he thinks Nvidia can thrive without Huang.

The broader tech sector was in retreat - though, crucially, not every tech stock. The Dow actually was looking set for a steady performance, despite a sharply declining Nvidia's (NVDA) prominence among the 30 stocks in the blue-chip, price-weighted index.

-- Check out our live markets coverage.

Optimism over Oracle ...

Oracle's future may be brightening.

Oracle shares have been hammered this year. Unfairly so, says one analyst, who argues the stock should be a "go-to" for investors in the AI trade, pointing to two potentially huge catalysts on the horizon.

A massive gamble on Social Security ...

There's a "big idea" being bandied about in the Senate about saving Social Security through a $1.5 trillion stock investment spread out over 75 years. Columnist Mark Hulbert looks at historical returns and points out why that's such a risky proposal.

If not now, when?

A 63-year-old reader has a net worth of $2.3 million, little debt and an urge to spend $95,000 to add a rooftop deck to her home. Is it a good investment? The Moneyist weighs in.

Inflation is running on its own steam now ...

Oil prices are falling while Treasury yields continue to rise. That's not a good sign. MarketWatch's Isabel Wang explains why the once-tight relationship between the two has broken down, and what that means for the inflation outlook.

The latest work perk ...

This couple qualified for $6,500 in down-payment assistance from an employer.

Buying a home is more expensive than ever. But some employers are now providing financial help to workers looking to purchase a first home. It's a perk that both parties benefit from, writes Aarthi Swaminathan.

Getting there early ...

Earlier this week, MarketWatch's Joe Adinolfi interviewed Christian Lamarco, the short seller whose forewarnings about Nvidia's China business suddenly look prescient. The New York Times and other major publications published their own stories about Lamarco.

It was a small newsroom moment for MarketWatch that I feel is worth sharing. Good journalism isn't just about being there first; it's also about recognizing an important story and identifying something that matters to our readers.

About me

Mark DeCambre is editor in chief of MarketWatch. He has spent more than 20 years covering Wall Street, markets and personal finance, and writes Need to Know, drawing on the award-winning analysis and journalism of the newsroom.

-Mark DeCambre

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11-12-26 0729ET