FBI intervenes heavily! Jensen Huang is highly likely to be ousted from NVIDIA's management.

This episode mainly analyzes the situation where NVIDIA's stock price has plummeted recently due to issues involving China and personal matters concerning CEO Jensen Huang. The host points out that the FBI has intervened in the investigation, Jensen Huang is facing a crisis of trust and the risk of being abandoned by major capital, and NVIDIA's management and future development are full of uncertainty. At the same time, the program also warns investors not to blindly buy the dip on NVIDIA, and incidentally analyzes the political risks and high valuation pressures facing Tesla and Elon Musk.

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NVIDIA's stock price has fallen very sharply over the past two days, dropping to 168. It fell from a price of nearly 240. This decline has been very fierce, lasting for about five or six days, a full week. The Jensen Huang incident is not such a simple matter. After I made the program two days ago, many people called me, including someone who called me in the middle of last night; they are all acquaintances in our circle. Many people said, "Mr. Hu, you spoke very deeply, you explained this matter thoroughly." Jensen Huang never imagined that things would reach this point today. He now wishes he could dig a hole and bury himself; he has nowhere to escape, and he cannot go home. He and his wife have two children; how can he face these two children?

The US government has got him locked down now, and he can't even go back to his own company. If he goes back to the company now, look at the entire board of directors—the stock price dropped all the way from over 230 to 168 simply because of your personal reasons, and it's going to keep dropping. Today, I'm doing this show to tell everyone: do not expect to buy the dip. Someone called me today and said, Teacher Hu, I'm planning to buy NVIDIA stock and buy the dip. Now I'm telling everyone, NVIDIA as a company is very likely to plummet all the way because of the Jensen Huang incident. This show is very important. Everyone says NVIDIA is a great company and it's ahead of the curve, and that is indeed the case. But this market is not monopolized by it. Of course, right now only they can make the highest-end chips, but one tier down—to put it in the simplest terms, one tier down—including a massive amount of these products, many companies can actually make them, and they are constantly researching and developing. America's R&D capability is very strong. There are many companies, like Google doing R&D, Amazon doing R&D, AMD doing R&D. There are many products where people can simply choose not to buy NVIDIA's products and buy substitutes from other companies instead; that is entirely achievable. Some products are made extremely well. Intel is also doing it now. The AI market, image processing, and computing power chips are actually being made by everyone; it's just that NVIDIA did an exceptionally outstanding job and is ahead of the curve. Another point is that NVIDIA has very strong market capabilities. Jensen Huang's success is tied to Jensen Huang, and his failure will also be tied to Jensen Huang. His marketing work has been done quite well; look at how he squeezed his way into Zhongnanhai and the White House, with the US government advertising for him. In fact, many other US companies possess his technology, and he doesn't completely control the entire market. Over these past couple of days, Intel's stock price has actually been performing fiercely; the things they make are also similar to its comparable products. That is a veteran chip company, much earlier than NVIDIA. So what is the world's tech industry, especially the IT industry, like? It changes perhaps every few months. If you suppose you stop, if you suppose you don't advance, it's very likely that within a few months another company will suddenly surpass you. This is a race everyone is running. Under these circumstances, you say you're still trying to find a way to buy it, waiting for it to get low—you have no idea how low it could go. At 168, who knows, maybe one day it drops to 100, or even drops to 68. Right now, nobody knows how deep the waters actually are between Jensen Huang and the Chinese Communist Party; that remains unknown.

His board of directors is already terrified, has launched an independent investigation, and is constantly awaiting the investigation results from the US government's FBI. Do you think Jensen Huang can sleep at all under these circumstances? He simply cannot sleep. There are many things he might have done—for instance, after having an extramarital affair and a physical relationship with a spy from the Chinese Communist Party, he is now recalling everything he usually said and did. There are two possibilities: one is that he inadvertently leaked a lot of new things; another is that he directly and intentionally let these things out. Therefore, regarding the Jensen Huang incident, you need to look at your stocks, and you must not blindly purchase NVIDIA stocks right now. Do not assume that just because the stock price has fallen to 168 today, if it drops for another day or two, you should figure out a way to buy it. It may rebound after dropping to a certain extent, but I advise everyone not to try and rush back in suddenly. You must wait until all detailed investigation reports and complete investigation reports regarding this incident are fully released; only then might the stock price stagnate. There will be a period of consolidation. Throughout the entire consolidation process, you should observe how the board and the company view his development, as well as whether his financial backers and big-money players behind him will abandon him. If they are not optimistic and decide to abandon him—because this company is essentially Jensen Huang, and everyone recognizes the company through Jensen Huang, recognizing the person himself—people consider NVIDIA and Jensen Huang to be almost synonymous, much like Tesla and Elon Musk. Companies like this are bound to individual heroism. When this hero suddenly collapses, his image suddenly collapses, and even his so-called heroism is thoroughly shattered, I think the value of this company may also be shattered at the same time. Under such circumstances, major capital is very likely to abandon him. I used to work in finance, and I know that once major capital abandons him, these enterprises are built up by major capital. This major capital can give to him, but they can also give to others or invest in others. If you are currently waiting to buy the dip on Jensen Huang's NVIDIA company, expecting it to go up in the future, I suggest you choose his competitor companies instead—that is, companies with similar products to his. Because once his market share is lost, his competitors may rush in, occupy this market, and carve it up. That could be a great opportunity for his competitors to grow. First, once his market becomes vacant, other competitors will enter; second, major capital may no longer favor him, completely losing confidence and becoming disappointed in him. Moreover, I feel the possibility of Jensen Huang making a comeback is almost zero, because Jensen Huang is not just an entrepreneur; in the eyes of many shareholders and many capitalists who pursue him, Jensen Huang's government relations were originally recognized by everyone. Now that he has lost the backing of the government and governments of various countries, will everyone immediately think of ways to withdraw and escape? Once major capital withdraws, the capital market relies entirely on capital to prop it up. That is why it has dropped so sharply in the past two days. Anyway, based on my personal feelings and personal analysis, I think it is entirely possible that major capital will abandon him. Right now, Jensen Huang himself is already overwhelmed and in a complete mess. To say that he can pull himself together again and make this enterprise big again—that possibility is extremely small. Your money cannot be invested in the company or person of someone who has no future, so everyone must be careful and not blindly buy the dip on NVIDIA.

Tesla faces the same problem. As everyone knows, the Democratic Party, the left-wing party, now holds a large majority in both the House and the Senate. Under these circumstances, given that Musk is so close to the Republican Party, especially Trump—although they have had some conflicts, everyone considers him to be on Trump's side—it is very likely that his companies will pay a heavy price in the future due to his past political involvement. Of course, this person's ability is very strong, but who knows when the U.S. might suddenly launch an investigation into Musk. Moreover, Musk has one trait: he is very similar to Jensen Huang in that he is very close to the CCP, a matter that all U.S. politicians and the U.S. government are very sensitive about. Once an investigation into him is launched, his company's stock prices—he has several ventures—you shouldn't expect them to rise significantly; it is very likely they will drop suddenly. So these are all uncertainties, and everyone should not take this risk. If you really want to make investments, to make long-term investments, you must be able to invest in something relatively stable. You could take, for example, 5% or 10% of $10 million as venture capital to invest in these high-growth potential startups. Companies like Musk's are relatively mature, and their markets are very well-established. Under these circumstances, letting a company like his—look at SpaceX's stock price, it's very stable, it doesn't move, and there are even signs of a decline; it's just that the market valuation is too high. Once you get in, it's not necessarily as good as everyone thinks. As a secondary market investor, the premium is already very high, and it has already overdrawn the stock price for many years into the future. Tesla is the same; those who buy in don't really make money. Furthermore, there will be more and more negative information about Musk. People are like this: when you reach a certain peak, you become a target, and many people are watching you. In this situation, while he has certainly acquired a massive amount of capital, he also encounters various obstacles that will affect the development of his companies. Once a company becomes large, its premium is high, and for a high-premium stock to rise further, I think the possibility is very small. Musk's stock really rose when it was in the startup phase, when it broke through technical bottlenecks and market barriers time and time again, and then it shot up. Later on, if you expect it to rise, it's in a consolidation phase, or even drops suddenly once some negative news comes out. So everyone must be careful. The Jensen Huang incident is just beginning as of today, not ending, not the finale. The other shoe has not dropped, and you don't know the extent to which Jensen Huang is involved, or to what degree he has colluded with the CCP; you have no idea. Some even suspect that he is on the side of the CCP, which is entirely possible. I will leave this topic here for now. Everyone, be careful, because I heard a friend today say they wanted to buy the dip on Jensen Huang's Nvidia, so I made this video to remind everyone that this matter is far from over; it has only just begun. Thank you for watching, and see you in the next topic.