CNBC host Jim Cramer has accused former Nvidia chief executive Jensen Huang of putting shareholders at risk through his personal conduct and management decisions, arguing that the chipmaker may emerge from the leadership crisis as a more disciplined business under new management.
“Did he betray you, the shareholders?” Cramer asked on Thursday. “Yes. End of story.”
Huang resigned as Nvidia’s chief executive on Thursday morning following reports of relationships with employees and an executive at a Singapore-based cloud computing company suspected by US intelligence agencies of having links to Chinese espionage. Hours after his departure, Reuters reported that Huang had an “intimate relationship” with a second Nvidia employee.
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The allegations have placed the leadership of one of the world’s most valuable technology companies under scrutiny, with potential consequences extending beyond its boardroom. Nvidia has also faced questions about possible violations of US chip export restrictions, adding a regulatory dimension to a crisis that has already unsettled investors.
Longtime chief financial officer Colette Kress has taken over as interim CEO. Cramer said Huang’s departure was necessary to limit further damage to the company, but argued that his exit does not mean Nvidia’s business model or competitive position has become unviable.
“There won’t be a better Nvidia, just a different one [without Huang],” he said, suggesting the company could become better organized and more disciplined in how it deploys capital.
Nvidia shares closed down more than 4% on Thursday after falling over 14% at their lowest point during the session. The latest decline brought the stock’s losses for the year to 12%, adding to investor concerns about the company’s leadership, regulatory exposure and future direction.
One of Cramer’s main concerns is the extensive investment portfolio Nvidia built under Huang. The company has used equity investments and commercial relationships to strengthen its position across the artificial intelligence industry, backing businesses that are also customers, infrastructure providers or important partners in the wider AI ecosystem.
Among the investments were a $5 billion stake in Intel in 2025 and a $2 billion investment in AI cloud provider CoreWeave earlier this year. The positions formed part of Huang’s broader approach to supporting companies that could help expand the market for Nvidia’s chips and strengthen the infrastructure surrounding them.
But Cramer questioned whether the investments represented the best use of Nvidia’s capital, particularly as the company faces pressure to demonstrate that its enormous cash generation can translate into sustainable shareholder returns.
During CNBC Investing Club’s Morning Meeting livestream on Thursday, he recalled urging Kress to reduce Nvidia’s holdings in Intel and CoreWeave. According to Cramer, Kress indicated that Huang preferred to maintain the investments.
The leadership transition could now give Nvidia an opportunity to reassess those positions. Cramer suggested the company could sell some of its investments and use the proceeds to finance larger share buybacks, returning more capital directly to shareholders.
That argument raises a broader question about Nvidia’s capital allocation. Huang’s investments helped deepen the company’s relationships across the AI supply chain, but they also exposed Nvidia to risks beyond the sale of its processors. Stakes in other technology companies can generate financial returns, but they can also create additional exposure to the performance, financing needs, and business prospects of those companies.
A more conservative approach could improve financial discipline and reduce the extent to which Nvidia’s capital is tied up in other businesses. However, selling investments that support commercial relationships could also weaken some of the partnerships that helped reinforce its position in the AI market. The challenge for Kress will be to distinguish investments that deliver commercial advantages from those that are no longer justified by their financial returns.
Cramer expressed confidence in Kress, describing her as someone with a deep understanding of Nvidia’s operations and finances. Her long tenure as finance chief could provide continuity at a time when the company must manage internal investigations, regulatory questions and uncertainty over its leadership structure.
Strong Earnings May Not Immediately Restore Investor Confidence
Cramer said Nvidia’s underlying business remains strong, pointing to its substantial cash reserves, engineering capabilities and expectations for a robust earnings report on Tuesday evening. However, he warned that strong financial results may not be sufficient to reverse investor caution while questions surrounding Huang remain unresolved.
The investigations could carry consequences for Nvidia’s international business if they establish violations of US export restrictions or lead to sanctions. The allegations involving the Singapore-based executive have also drawn attention to the risks facing a company whose global operations depend heavily on access to advanced technology markets and government approvals.
At the same time, competition in AI processors is becoming more intense. Advanced Micro Devices is making progress with its own AI chips, offering investors an alternative to Nvidia’s products. AMD shares rose almost 6% on Thursday, extending their gains to a fifth consecutive session as Nvidia came under pressure.
The divergence underpins how leadership uncertainty can affect investor perceptions of competitive advantage. Nvidia retains considerable engineering expertise and an established product roadmap, but prolonged disruption at the top could give competitors an opportunity to attract customers, employees and investors looking for alternatives.
Cramer has responded by adopting a more cautious position on Nvidia shares. The CNBC Investing Club, which manages a 32-stock portfolio known as the Charitable Trust, downgraded the stock to a hold-equivalent rating on Tuesday as uncertainty over Huang’s future intensified.
He also advised long-term investors who have accumulated substantial gains to consider taking some profits rather than allowing a successful investment to turn into a losing trade.
“Don’t ever turn a successful investment into an unsuccessful trade,” he said.
Cramer warned that the stock could fall further, particularly after analysts began downgrading their recommendations.
His position, however, is not a call to abandon Nvidia. He pointed to its engineering capabilities and multiyear product roadmap as reasons the company could remain at the forefront of AI computing without Huang.
The comparison with Apple’s transition from Steve Jobs to Tim Cook offers a possible model. Cook brought a different management style after Jobs, while preserving the company’s product development capabilities and commercial strength. Cramer suggested Nvidia could follow a similar path if its next leadership team can maintain its technological advantage while imposing greater discipline on investment decisions.
The comparison is not a guarantee of a smooth transition. Huang was closely associated with Nvidia’s technological direction, customer relationships and role in the expansion of AI infrastructure. Kress will have to establish her own authority while reassuring employees, customers, regulators, and investors that the company can execute its product roadmap without the founder at the helm.