Nvidia reports it has not yet begun the formal search for Jensen Huang's successor

Nvidia has begun evaluating potential successors to Jensen Huang and has already identified Rene Haas, the current CEO of Arm, as a relevant name in the semiconductor industry. According to reports from the Financial Times and Reuters, the executive is among the candidates analyzed by the AI giant's board after the co-founder's decision to step down.

Huang announced his resignation on Thursday, the 12th, after dedicating 33 years to the company. His departure occurred amid repercussions from a scandal related to extramarital affairs and a client who, according to suspicions from U.S. intelligence agencies, could be a Chinese spy.

Rene Haas, who has led Arm since 2022, has a history of collaboration with Nvidia. He worked for the company for about seven years more than a decade ago and maintains close ties with both Huang and board members.

Although approached, there is no confirmation that Haas will receive a formal offer or that he will accept leading Nvidia. He is also among the few external names considered capable of filling the vacancy.

The possible selection of Haas carries an additional dimension due to the interconnection between Arm and Nvidia in the semiconductor market. Arm's technology is used in most global smartphone chips and is also utilized in Nvidia's AI devices. However, this year, the British manufacturer launched its own complete AI chip, entering direct competition with companies that are even Arm customers.

Furthermore, Haas established a close relationship with Masayoshi Son, CEO of SoftBank, a Japanese conglomerate that owns Arm and seeks to create an AI ecosystem capable of competing with Nvidia's. In April, Haas also took responsibility for SoftBank's international operations.

During his time at Nvidia, Haas had already received guidance from Huang. After leaving the company in 2013, he moved to Arm. It should be noted that Nvidia attempted to acquire the British manufacturer in 2020 in a deal valued at US$40 billion (approximately R$213 billion at the exchange rate at the time), but the deal was discontinued due to regulatory issues.

Parallel to the succession analysis, the Nvidia board is overseeing an independent investigation into Huang's conduct, conducted by a former federal prosecutor. This process has intensified the focus on governance and company management.

The potential departure of Jensen Huang from Nvidia's leadership has raised questions about who will take over the chip manufacturer's command. The founder has dozens of direct subordinates, and the board of directors has already held meetings to discuss his future.

This situation of instability is also worrying investors, given that the company has lost about $600 billion in market value since the start of an investigation involving the executive.

Jensen Huang, who is 63 years old, established Nvidia more than three decades ago and owns approximately 3.6% of the company's shares. His eventual departure would create a succession dilemma, as there is no obvious replacement to fill this position.

According to Reuters reports, Colette Kress, the company's CFO, is considered a natural option to temporarily assume the duties. Ian Buck, an executive focused on data centers, is also among the names considered as potential successors.

Bloomberg information, cited by Reuters, indicates that Nvidia is collaborating with an external consultancy to identify possible candidates for succession. Huang's central position in the management structure is evidenced by the fact that he maintains dozens of direct subordinates.

Nvidia's board of directors met on Wednesday, the 11th, to discuss Huang's future, according to a source close to the matter contacted by Reuters. This meeting took place just a few days after the directors expressed confidence in the executive and his leadership team on Sunday, the 8th.

The corporation's internal rules allow the CEO to be removed with or without justification, provided the decision achieves a majority of dissenting votes among the 11 board members.

On Thursday, the 12th, Nvidia's shares fell by approximately 7% in initial trading in Frankfurt. Since the beginning of the investigation, the company has lost about $600 billion in market value.

Ratings from Bernstein and Oppenheimer resulted in downgrades of their recommendations for the manufacturer's securities, while Citi lowered its price target. Analysts interviewed by Reuters expressed apprehension about the company's strong dependence on Huang's leadership, particularly regarding strategy formulation, business ties, and overall direction.

The effects of this uncertainty have extended to other companies in the artificial intelligence sector. During after-hours trading, CoreWeave shares fell 6%, and Micron's plummeted almost 2%. In contrast, AMD and Broadcom showed increases of 4% and 3%, respectively.

Nvidia has scheduled the release of its quarterly results for November 17, amid a scenario marked by doubts about its founder remaining at the helm of the company.

Nvidia's board of directors hired an external firm with the goal of identifying potential replacements for Jensen Huang, who is both the company's founder and CEO. This action comes amidst a crisis triggered by revelations about the executive's extramarital relationships, including involvement with a businesswoman suspected of working for Chinese intelligence.

The news was reported by Bloomberg, based on information from a source close to the matter. According to the journalistic account, board members are also considering the option of appointing an interim CEO while searching for a permanent successor. A board meeting took place this Wednesday (11) to discuss Huang's future.

The possibility of a leadership change gained more momentum after The Wall Street Journal published that the board was preparing to remove the executive. The new information suggests that the company has already begun considering alternatives should the founder leave the company.

The crisis also highlighted the absence of an established succession plan for Huang. At 63 years old, he is seen as an essential figure to Nvidia's identity and performance, which has solidified its position as a primary chip supplier for artificial intelligence (AI) development.

In addition to managing the company, Huang actively participates in negotiations and investments within the AI supply chain and in industry startups. He is also one of the industry's main spokespersons, advocating for the benefits of AI and mitigating concerns related to its risks. The founder's great influence explains the complexity in finding a replacement, as his departure could generate impacts beyond Nvidia's operations, affecting the technology market as a whole.

Following the publication of reports regarding Huang's relationships, Nvidia's shares fell by 8% during Wednesday's extended trading session, as reported by Bloomberg.