Tom Lee: Jensen Huang's Departure May Weigh on Nvidia in the Short Term, but It Remains One of the Best Risk-Reward Opportunities in AI

Odaily reports: Tom Lee posted on X regarding Jensen Huang's departure, stating that the departure of a founder and CEO is a major test for any company, but Nvidia is still expected to maintain its industry-leading position, citing its technological advantages in chip design, supply chain control, and the CUDA ecosystem, as well as its deep bench of engineering talent.

Tom Lee also noted that Nvidia has a strong employee ownership culture, with approximately 80% of employees holding million-dollar-level wealth, of which 50% hold company stock worth more than $25 million, giving employees a strong incentive to safeguard the company's market-leading position. In addition, Nvidia generates substantial free cash flow, which can support its share price through stock buybacks.

He believes that Huang's departure could put pressure on the stock price in the short term, but at roughly 10x forward P/E, Nvidia is currently one of the most attractive investment targets in AI on a risk-reward basis.