Tom Lee: Buy Nvidia on Dips, Long-Term Competitive Advantage Won't Be Affected by Management Changes

BlockBeats news, November 13 - Tom Lee, Chairman of Ethereum treasury company Bitmine, stated in a post that the departure of founders and CEOs is a huge test for any company, but he remains optimistic about Nvidia's continued industry leadership. Nvidia has significant technological advantages in chip design, supply chain control, and the CUDA ecosystem, and these core competitiveness factors will not disappear due to management changes. Additionally, the company has a deep reserve of engineering talent; if Jensen Huang were the sole core figure in chip and architecture design, the company would face much greater risk.

Nvidia has a strong employee stock ownership culture internally, with approximately 80% of employees owning stock assets worth $1 million, and 50% of employees holding shares valued at over $25 million. This means employees are deeply tied to the company's long-term development and have a strong incentive to maintain industry leadership. At the same time, Nvidia's current price-to-earnings ratio is attractive, and abundant free cash flow also enables the company to support its stock price through share buybacks.

Jensen Huang's departure may trigger short-term market volatility, as many investors will view it as a negative event, but based on a forward price-to-earnings ratio of about 10 times, Nvidia is currently the most attractive risk-reward target in the AI sector. Tom Lee advises investors to buy on dips and emphasizes that Nvidia will remain one of the world's most important companies in the future. He also expressed regret over Jensen Huang's departure and said he believes Huang will continue to create excellent products in the future.