Altimeter, Atreides Urge Nvidia to Keep Jensen Huang Option Open

Nathan Brooks

Altimeter Capital disclosed 9.4 million Nvidia shares worth nearly $1.9 billion on June 30, then joined Atreides in asking Nvidia's board on Nov. 13 to consider a potential return of Jensen Huang.

Atreides disclosed 1.2 million shares worth about $250 million. Together, the stakes amounted to 10.7 million shares, roughly 0.04% of Nvidia, according to 24/7 Wall St., which valued them at $1.74 billion at Friday's close.

Altimeter's latest 13F named Nvidia its largest disclosed equity holding. Neither fund had filed a third-quarter 13F by Saturday morning; the deadline was Nov. 16. For comparison, Huang himself owned about 3.58% of Nvidia in March, according to the company's proxy statement.

What do the fund managers want?

Brad Gerstner, Altimeter's chief executive, and Gavin Baker, Atreides' managing partner and chief investment officer, signed a one-page letter to the board. Baker said it was sent on Friday, Nov. 13; Gerstner posted it on X that day.

The letter calls itself “a simple request” and says a slow, measured process would “leave all options on the table, including the potential return of Jensen Huang.” It does not demand immediate reinstatement, says Colette Kress and team will lead Nvidia in the interim, and seeks no shareholder vote, board changes or special meeting.

“There are more questions about recent events than answers,” the letter says. It cites “the massive uncertainty associated with recent events surrounding his departure” and says the board “has the benefit of time to get this right.”

The letter presents its view as “we believe is widely agreed to among shareholders” and cites “the extraordinary success of Jensen Huang's leadership over a long period of time.”

If the board decides against Huang's return, “that is the Board's prerogative,” it says. Baker called the letter a first for Atreides and said it set “minimum acceptable standards.”

Where does the board stand?

Huang resigned as CEO and director on Nov. 11, and the board accepted his resignation. Nvidia's 8-K gives no reason for the departure and describes no disagreement with the board. The company named longtime director Harvey Jones as its first chair and has said it will consider internal and external candidates.

On Nov. 13, the board said it was still selecting a search firm and had not formally engaged any candidate. “Any speculation regarding individual candidates, whether internal or external, is premature,” the board said, according to CNBC.

Neither the board nor Huang had responded publicly to the letter or petition by early Saturday. Nvidia did not respond to a request for comment from 24/7 Wall St. The Financial Times reported that the board approached Arm CEO Rene Haas; Reuters could not verify that report. For now, Haas is a reported candidate, not a confirmed one.

What is the investigation examining?

Independent directors hired Wachtell, Lipton, Rosen & Katz and former acting U.S. Attorney Joon H. Kim on Nov. 10 to conduct a “thorough and independent investigation.” Nvidia has not said when it will finish. The 10-member board holds the leadership decision.

Reuters reporting questioned whether Huang misled Nvidia's top lawyer about his ties to Alice Huang. Its Nov. 13 report, citing two people familiar with the matter and internal correspondence, said he told general counsel Tim Teter and other leaders that his October interactions with Alice Huang reflected standard business dealings. Nvidia and a Huang representative declined comment.

Before the resignation, Georgetown associate professor Jason Schloetzer told Fortune that “boards remove CEOs over candor issues.” He asked what Huang told the directors, when he said it, and whether the board could trust his future communications. The letter's signers frame those same questions as a reason to wait.

U.S. authorities have investigated Alice Huang, a former executive of Nvidia customer Megaspeed, over suspicions of spying for China. She has not been charged, Beijing denies the allegation, and Attorney General Todd Blanche said on Thursday that the Justice Department had reached no conclusion.

CNBC reported that the Justice Department also is investigating Megaspeed over possible diversion of restricted Nvidia chips to China. Separately, the “Stand with Jensen” organizers wrote: “We have not been shown evidence substantiating the espionage allegation.” They said the campaign does not treat the allegations as proven facts or presume the inquiry's findings.

What does the petition represent?

The online campaign asks the board to reinstate Huang during the investigation, disclose the inquiry's scope and timeline, and give him a chance to respond. It counted about 97,000 names on Saturday morning, according to Business Insider.

The campaign's site lists more than 51,000 shareholders, more than 5,100 current Nvidia employees and nearly 900 former employees. Signatories self-reported their affiliations, and neither Nvidia nor Huang has endorsed the campaign. Business Insider found entries such as “Tim Cruise, Hollywood actor”; organizers said on X that they were removing fake signatures.

Elon Musk said on X on Friday that he had signed the petition. On Saturday, he wrote that without Huang some “critical deals will be lost,” CNBC reported. Other listed signers include Baker, Replit CEO Amjad Masad, Y Combinator CEO Garry Tan and Epic Games CEO Tim Sweeney. A petition can supply volume, but not a board vote.

What comes next?

House committee chairs Brian Mast, John Moolenaar and Rick Crawford asked Huang for a closed-door, transcribed interview on Dec. 1. Senate Banking Committee Chair Tim Scott asked him to testify on Dec. 3.

Nvidia reports third-quarter results on Tuesday, Nov. 17, its first under interim CEO Colette Kress. The board still must answer the letter, choose a search firm, and establish when its investigators will report. The results will provide the first financial read since the resignation, while the market weighs whether a delayed succession protects Nvidia or merely postpones the verdict.