Jensen Huang's Future Hangs in the Balance as NVIDIA's Debt Default Insurance Costs Rise

TechFlow reported on Nov. 12 that as NVIDIA's board met on Thursday to decide on CEO Jensen Huang's future, the company's debt default insurance costs rose. Data from ICE Data Services showed NVIDIA's five-year credit default swap (CDS) cost briefly jumped 3.25 basis points to 1.445% annually, approaching the intraday high set on Nov. 3.

Although this cost has more than tripled since midyear, it remains only about half that of lower-rated hyperscale cloud companies like SpaceX and Oracle. According to a person familiar with the matter, after Jensen Huang was exposed for multiple extramarital affairs, the NVIDIA board has been collaborating with an external firm to identify potential CEO successors. The board is considering appointing an interim CEO while searching for a permanent replacement. (Jin10)