Nvidia CEO Ousted Amid Spy Scandal: What's Next?

Nvidia CEO Jensen Huang resigned on Thursday morning, following reports of an extramarital affair and allegations of ties to a Chinese spy. This departure raises significant concerns for shareholders regarding the future leadership of the company, which has been spearheaded by Huang for decades.

Despite the recent upheaval, Nvidia continues to lead in the AI processor race. While AMD has reported a 97% year-over-year increase in its data center revenue to $8.5 billion in Q3, Nvidia's fiscal Q2 saw its data center sales grow by 117% to $89 billion. Nvidia has guided for 70% revenue growth in fiscal 2028, indicating strong future performance locked in by advance orders from AI hyperscalers.

From a valuation perspective, Nvidia appears to be the more attractive investment. Its forward price-to-earnings ratio is approximately three times lower than AMD's, suggesting Nvidia's stock is significantly undervalued relative to its growth potential. This pricing mismatch, coupled with Nvidia's robust business fundamentals, positions it as a stronger buy despite the ongoing search for a new CEO.

The Motley Fool's Stock Advisor analysis indicated that while Nvidia made their top 10 list in April 2005, it was not among their current top 10 best stocks to buy in November 2026. This suggests a nuanced view on Nvidia's immediate prospects despite its market leadership.