This is one aspect of the complexity facing Colette Kress as she guides Nvidia, and thus the industry, through the immediate future.
From Yahoo Finance, November 12:
Jensen Huang didn't just sell chips for the AI boom. He helped pay for it, and Wall Street is now repricing everyone on his tab.
Huang resigned as Nvidia's (NVDA) CEO and left its board Thursday, effective immediately, after reports of two affairs, one involving an alleged Chinese spy. CFO Colette Kress is now interim CEO, and the company still plans to report earnings Tuesday.
Nvidia stock sank to its lowest level in more than a year, putting it about $2 trillion below its October record at its low. But the selling hasn't hit the AI trade evenly. Nebius (NBIS) and CoreWeave (CRWV), cloud companies that rent out Nvidia chips, took the worst of it, while rivals Broadcom (AVGO) and AMD (AMD) and most of Big Tech held up.
That pattern traces the bank of Nvidia.
Nvidia owns stakes in Intel (INTC), SpaceX (SPCX), CoreWeave, and Coherent (COHR), and it has pledged up to $10 billion to Anthropic (ANTH.PVT) ahead of its IPO next week. It also has a preliminary deal to put as much as $100 billion into OpenAI.
Nvidia's latest quarterly filing lists about $530 billion in commitments and guarantees, by Yahoo Finance's count, including roughly $65 billion to rent back cloud capacity from companies like CoreWeave and a guarantee of up to $105 billion on OpenAI's Ohio data center leases.
"It does bring into question what we've been talking about for ... the better part of the last year, which is a lot of these circular relationships," Liz Thomas, chief market strategist at SoFi, said at Yahoo Finance Invest.
The pressure points
The first is the dealmaker himself. Huang sat at the center of these deals, and Kress, who signed off on them as CFO, now decides how many more to write....
....MUCH MORE
A couple throwaway lines in recent posts:
...The job that Ms. Kress is taking on is almost mind-boggling complex, we wish her the best....
She does know a lot about the business.
