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Nvidia Board Considers CEO Huang's Fate
13 Nov
Summary
- Nvidia's five-year CDS cost surged significantly on Thursday.
- The board convened Thursday to decide on CEO Huang's position.
- Annual CDS costs have more than doubled since midyear.
Nvidia's five-year credit default swap (CDS) cost rose by up to 3.25 basis points on Thursday, reaching an annual rate of 1.445%. This increase brought the cost close to its intraday high recorded on November 3. The company's board of directors convened on Thursday to make a critical decision regarding the tenure of CEO Jensen Huang.
The annual cost of Nvidia's credit default swap has more than doubled since the middle of the year. Despite this rise, the cost remains approximately half of that for companies like SpaceX and Oracle, which currently possess lower credit ratings. Concurrently, Nvidia's directors have been actively engaged with an external organization to identify potential successors for the CEO position. They are also evaluating the possibility of appointing a temporary CEO to lead during the search for a permanent replacement.
