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Officially. Jensen Huang from NVIDIA has been fired. He just resigned from his positions as president, CEO, and board of directors. He disappeared from all sides. And no, his position was not taken by a family member. Instead, he was taken over by the existing CFO. And if there's any upside to this, it's that Elon Musk has offered him a job, and that offer is starting to look somewhat attractive. Here is the tweet. Elon Musk, please hire Jensen. And Elon says it would be an honor. So perhaps it's no surprise that today we're seeing SpaceX stock rise quite nicely in response to how the market is performing.
But more about SpaceX and all that in a moment. Let's talk about this because when this news broke in the premarket, NVIDIA shares fell 13%. NVIDIA's board of directors released this just before the market opened. And what's notable is the prediction markets, even though the board of directors said yesterday that we're working to remove him, even though that was said, the prediction markets only had a 78% chance that he would go by January 1st. And so, of course, now this figure has increased to 100%, essentially. But I'm just surprised that 20% could be collected in one night because it was pretty obvious that they were working to knock him out. They just needed to figure out who would replace him. I'll
talk about who's going to replace him now, but it was a big move on Kashi's part, and I thought, well, there's an opportunity to make some money. Keep in mind that Kashi is a paid sponsor of Reinvest. Get $25 free when you sign up for Kashi and make your first transaction at kashi.com/r/me Kevin. Scan the QR code or use my name, Kevin, when registering. So, here's the thing. NVIDIA shares fell 13.37, which is not as elite a move as it was in the pre-market stage. So now some people are buying into this fall. Now it has fallen by about 7%. This is obviously dragging the market down. But who is Colette? Colette is the CFO. She also serves as Marco Rubio's interim CEO.
Colette joined Nvidia back in September 2013. Before Nvidia, she worked for 25 years at Cisco and Microsoft. So she is familiar with dot-com bubbles. But anyway, the main thing right now is that the board of directors is looking for a permanent CEO, and at least in their document they say they will consider internal and external candidates, which is kind of a way of showing that we are ready to move on from the Huang family. You know, we seem to be drying up here, and we're tired of it. Some people say: brother, come on. Literally the guy who invented parallel processing should be single-threaded.
Sure, while the memes are crazy, the real-world reality of losing a CEO is an unfortunate occurrence, but the company will likely continue to operate just fine. Keep in mind that Nvidia is a company with 42,000 employees, earning between four and seven million dollars per employee. This is madness. This is significantly more than companies such as Apple, Netflix, and Spotify. Spotify has about 3 million per employee. Apple and Netflix- about 3.1 million per employee. Meta has about 3.45 million per employee. Coreweave
. I mean, it's a little different because you're actually getting a return on investment on invested assets, but 3.8 million per employee. Coreweave. Madness. So Nvidia, you know, beats all of them. Nvidia can't match Valve Corp. Valve has about 19 million per employee, which is truly incredible. You know, the creators of Steam for games. And then there's OnlyFans, which makes about 37 million per employee, which is also crazy. But some of them.Wow. But anyway, obviously, you know, this is a great time to make a comparison to Steve Jobs. When Steve Jobs resigned because he was about to die of pancreatic cancer, a terrible loss. When he, uh, and then died in 2011
, many people were under the impression that it was the end of Apple. Uh, Apple too, I mean, how many employees does Apple have today? Ha? Apple, how many employees are there today? And then let's compare that to 2011. They have 166,000 employees today. And in 2011, just to compare with the Steve Jobs era. By the way, the coupon expires tomorrow at reinvestone.com. Check this out. At least take a look at this, okay? Let me know what you think. In 2011, they had 60,000 employees. They have literally added 100,000 employees since Steve Jobs died. And this, I mean, 2011 was kind of the bottom of the markets, and 2009 was really for the stock market, but 2011 was for the real estate market. Uh, you know, if you go back all the way to
2011, look at what this company has done since 2011. It was, you know, I started my career in real estate around 2010 and 2011, when I was in college. So I remember where I was. I was in accounting class when we heard that Steve Jobs had died. But anyway, you know, since then the return has been 2800%. This is madness. So, you know, these companies can definitely exist without these, uh, these leaders who have implemented visionary ideas in the past. Um, this is not an attempt to discredit Jensen. But, I mean, in 2014, the Apple Watch came out. Maybe Steve Jobs had something to do with the Apple Watch, because he said they had something like a five-year product development plan. But while Siri is still terrible, I have to say that the company
has made exceptional progress since then. And the same thing could happen to Nvidia. I still think it's inexpensive. Uh, you know, I think there's probably a downside opportunity here, but it's not just Nvidia that's getting the downside opportunity. Uh, actually it's the broader tech sector that's getting another opportunity. But I don't think it's surprising that SpaceX is up almost 3% because of this. To be honest, Tesla should also rise because Tesla would likely receive a premium valuation compared to SpaceX in the event of a SpaceX buyout of Tesla. So what's interesting here is that Jensen is going to take the next six months off, because he's going to be shocked and he's going to have to adapt, and he's going to go on
vacation and he's going to get drunk, you know, whatever he needs to do. Of course, I think this guy will get back to work somewhere. I wouldn't be surprised if Elon swoops in and picks him up. There are no guarantees, but Elon literally wants as many Nvidia chips as possible. Who better to sell these chips than someone who can sell themselves? Uh, Jensen might have some good connections to get those supply chains. I bet Elon is texting that guy, "Want to do something crazy?"
This is obviously speculation, so keep that in mind, but it's very interesting because Elon wants to build Terra Fab. Uh, you know, I tweeted about this yesterday too. Sure, I don't get support from some of the really big accounts on X, and that's okay, but I tweeted about Terra Fab yesterday. If you follow me on X, I'm the real Kevin, you'll see this, but I said, " What if Elon Musk bought Nvidia Terra Fab on bail?" Obviously, it would be something like GameStop wanting to take control of a much larger company like eBay. How are you going to afford this? Where will the money come from? Some of this sounds funny, but maybe you don't need Nvidia. Maybe all you need is Jensen. But I mean, there are some really interesting ideas
, if Elon just bought a chip company to build Terra Fab, or maybe Jensen could help you with that. Imagine Jensen in his black leather jacket as the chief negotiator. He is the one who makes deals. He makes these deals for the sake of what the company should invest in, for the sake of what the company should do in the future. That's why people consider this such a blow to Nvidia. I think everything was obvious yesterday. The first time you cheat with a spy, well, you didn't know she was a spy. We could protect it. He sleeps with employees. Now you are violating company policy. Now we must release you. It's like: fool me once, shame on me, or, uh, fool me, shame on you, fool me
twice, shame on me, right? You can't do this. Especially now, with Elizabeth Warren and Chris Coons saying, "Hey, Trump administration, keep your documents on everything you know about Nvidia and China." Investigations are coming. At this point with the second scam, and there will probably be more, you had to get rid of Jensen at this point with the second scam. As soon as I saw the news, I thought, "Oh, this is the death knell." Anyway, uh, Harvey Jones was also appointed chairman of the board. This is the first time in Nvidia's history that they have a chairman of the board, because he was previously the CEO. Jones worked at Synopsis, and he was there, uh, well, he was there until
1993, and then he joined the board of directors of Nvidia. Uh, this is a small reshuffle on the board of directors for those who care. The announcement, quote, doesn't say why Jensen resigned, but I think it's pretty obvious. It is now expected that perhaps a member of the Jensen family will take over as permanent CEO, but for now the CFO does so. She participates in earnings conferences. She was a CFO for over 25 years. She will likely remain in this position. They really need a dealmaker as CEO to drive this company forward and motivate it. They also need a healer to put it all together, right? The company's next earnings conference call is
also only 5 days away, which is a bit inconvenient. And then, of course, there remains the question of what will happen to Jensen Huang's 3.6% stake in Nvidia, and of course, half of that belongs to his wife. About 3.7, about 3.79, depending on the day you look at it. Uh, you know, there's a good chance that the wife will start getting rid of Nvidia shares. The real question now is what happens if Jensen starts dumping Nvidia stock and then goes and buys stock in whatever other company he eventually joins. We do n't know that. Uh, what we know for sure is that within the last hour, Donald Trump has said, "Hey, we don't have to deal with this," because that's the whole problem. If you don't reach an agreement before the election,
you won't have the motivation to make one, so you just procrastinate because the blockade could last forever. So, this is the latest news. Yes, this creates another opportunity to buy bonds in a downturn. It seems like it's never ending, uh, and unfortunately, as a result of all of this, we're seeing the bond market being very unhappy right now. The 10-year bond yield is at 507, which is still 20 basis points below where I called the peak. But it's rising again because now it looks like Trump may have no motivation to make a deal at all. However, the oil is flowing. It's just that the price is likely to stabilize in the $85 to $95 range. So not very good.
I have to say, you get hit in the face all the time for things that create gaps here, but, oh my. You know, this is, uh, something you sometimes have to deal with in the market. What do they say? When it rains, it's a storm, right ? Hooray. In any case, don't forget to visit reinvestone.com. We have a PP coupon, which sounds wrong right now, but anyway, we have a PP coupon that expires tomorrow, so we'd like, uh, for you to get involved with that. And, uh, I need to run. I have an engagement I've been preparing for, and I need to run. So, uh, see you later. Goodbye and good luck. If you liked this video, check it out.
I think you'll like it. Why not promote these things you told us about here? I think no one else knows about this. We'll try to advertise a little and see what happens. Greetings, friend. You have done so much. People love you. People look up to you. Kevin Paffrath, financial analyst and YouTuber. Meet Kevin. It's always great to hear your opinion.
