☄️🥂 𝕻𝖞𝖙𝖍𝖎𝖆 ᴿᴬᴳᴱᑫDᵢ̄ᵥ 𝕾𝖍𝖎𝖒𝖙𝖊𝖗𝖊𝖉✈️

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.