Altimeter's Brad Gerstner and Atreides' Gavin Baker Urge Nvidia's Board Not to Rush Jensen Huang's Replacement
This letter was sent to Nvidia's board today. A first for @atreidesmgmt Absolutely share @altcap belief that this letter outlines minimum acceptable standards.
Context
Two well known investors asking for a deliberate CEO search that keeps Huang's return on the table adds shareholder weight to the push from employees.
Jensen Huang resigned as Nvidia CEO on November 12 and CFO Colette Kress became interim CEO, and the Wall Street Journal reports Nvidia will look at internal and external candidates. Employees and alumni have since circulated a petition to bring Huang back. On November 13, Altimeter Capital CEO Brad Gerstner and Atreides Management CIO Gavin Baker each posted a letter they said was sent to Nvidia's board.
Deep dive
The letter, signed by Brad Gerstner of Altimeter Capital Management and Gavin Baker of Atreides Management, says the two write as shareholders to share a view they believe is widely agreed among shareholders. It asks the board to pursue "a slow, measured, and deliberate process" on Nvidia's future leadership that "leaves all options on the table, including the potential return of Jensen Huang."
The letter says there are more questions about recent events than answers and that the board should avoid a rush to replace Huang that undermines shareholders' interests. It says the company will be capably led in the interim by Colette Kress and her team. If, after all the facts are known, the board decides Huang should not return, the letter says that is the board's prerogative, but that the founder has earned a deliberate process.
Baker wrote that the letter was a first for Atreides and that he shared Gerstner's belief that it outlines minimum acceptable standards. Gerstner wrote that it outlines "the minimum acceptable standards the Board owes shareholders as it manages this difficult situation." Neither post says how many Nvidia shares the two firms hold.
Separately, Polymarket reported an open letter from Nvidia employees, alumni and shareholders calling on the board to reinstate Huang immediately. That push is covered in the employee petition story in this deck.
What to expect next
Watch for any reply from Nvidia's board, whether other large shareholders sign on, and how the board describes its CEO search when Nvidia reports third quarter results on November 17. The Wall Street Journal reports that federal and internal investigations are underway, and their findings could decide whether a return is realistic. A quick appointment of a permanent CEO would run against what the letter asks for.