Bessent says Nvidia needs an outsider CEO and a dramatic shakeup
Treasury Secretary Scott Bessent said on Sunday that Nvidia should hire its next chief executive from outside the company, and gave the board 10 days to answer questions about its compliance culture.
What Bessent said on Sunday
U.S. Treasury Secretary Scott Bessent said on Sunday that Nvidia should look outside the company for its next chief executive, telling Fox News' "Sunday Morning Futures" that the chipmaker needs a "dramatic shakeup" after the abrupt departure of Jensen Huang, Reuters reported.
Bessent also said Nvidia's board and its outside counsel need to answer, within the next 10 days, questions about the company's culture of compliance with export restrictions. His remarks are the first public comments from a senior administration official on how the board should run the search.
A search pulled in two directions
Huang stepped down on Thursday after revelations of extramarital affairs, including one involving a suspected Chinese spy, Reuters reported. The Financial Times reported on Friday that the board has approached Arm Holdings chief executive Rene Haas about the job, while the board told CNBC it has not selected a search firm and that speculation about candidates is premature.
Two major investors have urged a different course. In a letter to the board, the firms asked for a slow, deliberate search that leaves open the possibility of Huang returning, CNBC reported. The firms disclosed about $2.13 billion of Nvidia stock combined as of June 30, and the letter did not call for Huang's immediate reinstatement.
Earnings on Tuesday are the next test
Nvidia reports earnings on Tuesday after the close, the next test for a stock that has lost more than $1.8 trillion in market value since its October 6 peak. The shares have fallen about $573 billion in market value in a single week, the largest weekly loss for any company on record, and are down 13% this year.
The company was worth about $5.77 trillion at the peak and about $3.92 trillion after Friday's close, below $4 trillion. Investors will be watching whether the new leadership question, rather than the numbers alone, sets the tone for the week.
