Tom Lee: Buy NVIDIA on dips, its long-term competitive advantage will not be affected by management changes.

Tom Lee, chairman of Ethereum treasury firm Bitmine, posted that the departure of a founder and CEO is a major test for any company, but he remains optimistic that NVIDIA will continue to lead the industry. NVIDIA has significant technological advantages in chip design, supply chain control, and the CUDA ecosystem—these core competencies will not disappear due to management changes. Additionally, the company boasts a deep pool of engineering talent; if Jensen Huang were the sole core figure in chip and architecture design, the company would face far greater risks. NVIDIA has a strong employee stock ownership culture: around 80% of its employees hold stock assets worth $1 million, and 50% hold stock valued at over $25 million. This means employees are deeply aligned with the company’s long-term growth, giving them strong incentives to sustain its industry leadership. Meanwhile, NVIDIA’s current price-to-earnings (P/E) ratio is attractive, and its robust free cash flow allows the company to support its stock price through share repurchases. Jensen Huang’s departure may trigger market volatility in the short term, as many investors will view it as a negative event. However, based on a forward P/E ratio of around 10x, NVIDIA is currently the most attractive AI sector stock in terms of risk-reward ratio. Tom Lee advises investors to buy on dips, stressing that NVIDIA will remain one of the world’s most important companies in the future. He also expressed regret over Jensen Huang’s departure, adding that he believes Huang will continue to create excellent products.