On the Nvidia situation: Nvidia, $NVDA, is now down another -7% today and -12% since the Jensen Huang affair situation began. At this point, the market is pricing in two major potential headwinds. First, the growing possibility that Jensen Huang will be removed as CEO. Second, possibility that sensitive Nvidia technology or information was compromised. Are these scenarios possible? Sure, but we believe both remain unlikely, with less than a 20% probability. Nvidia's stock is now down -32% in just 24 trading days, erasing -$1.8 trillion in market cap, with over one-third of these losses coinciding with the Jensen Huang controversy. We believe Huang remains an integral part of Nvidia's future and the broader AI Revolution, and this week's events will not derail the broader thesis. As the dust settles and uncertainty begins to fade, we expect bargain hunters to step in. The fundamental AI investment thesis remains intact.
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