Dan Ives Rejects Jensen Huang Comeback as Nvidia Investors Push for Return

Detailed summary

A prominent Nvidia bull says Huang's reputational damage is irreversible, despite calls from major shareholders for his reinstatement.

Prominent Nvidia bull Dan Ives has ruled out a return to the company for Jensen Huang, even as its former CEO reportedly considers a comeback with support from leading Silicon Valley figures.

"Despite pressure from major shareholders we see no chance Jensen comes back to Nvidia as CEO," Ives told Newsweek in an email Sunday. "The black eye moment for Jensen is impossible to come back from and this is the reality in my view."

The Financial Times reported Sunday that Huang has discussed returning with confidantes, citing multiple people familiar with the matter. One ally told the newspaper that supporters were organizing a "war room" of technology executives to lobby Nvidia's board and seek White House backing.

The reported effort has Huang's support, according to the FT, even as Nvidia's board investigates the conduct that led to his resignation Thursday.

Corporate governance expert Charles Elson also questioned the prospects of Huang returning, telling Newsweek Sunday that reinstating the chipmaker's co-founder would not resolve the questions facing its board.

Newsweek contacted Nvidia on Sunday. The company provided statements from its board of directors regarding the CEO search and its support for interim CEO Colette Kress.

Ives, a senior managing director at Yorkville Ives & Co., said Huang's departure had left a void that no successor could fully fill.

"There will be major pressure on the Board and Jensen is one of a kind and he is worth roughly $1 trillion to Nvidia's valuation," Ives told Newsweek.

But the analyst said the reputational damage and investigations surrounding Huang made a comeback unrealistic.

Opening of the article, excerpted from Newsweek. To read the rest, open the article on the publisher's site.