Can Nvidia Pull A Tim Cook? Apple's Post-Jobs Performance Offers Clues

What happened

After Steve Jobs left Apple’s CEO role in August 2011, Tim Cook was named CEO immediately. Apple later reported fiscal fourth-quarter revenue of $28.27 billion and diluted earnings per share of $7.05, above its guidance, but shares fell nearly 8% after the results because they missed higher Wall Street expectations, especially for iPhone sales.

Confirmed

Global impact / market context

Apple’s example shows that a leadership change does not by itself determine business performance: results still depend on sales and whether they meet investor expectations. For Nvidia, the article frames Apple’s history as a precedent, but provides no Nvidia results or details establishing that the situations are comparable.

Analyst inference

Apple’s shares initially fell 5.22% after Jobs’ departure, then were down 0.7% by the next day’s close. Later, despite beating management’s forecast, they dropped nearly 8% after results missed higher Wall Street expectations, illustrating how expectations can shape share moves.

Confirmed

What to watch

1. Look for Nvidia’s reported revenue and profit per share after the leadership change, then compare them with company forecasts and investor expectations to see whether business performance remains strong. Analyst inference
2. The article says Apple’s fiscal first-quarter 2012 forecast was about $37 billion in revenue and $9.30 diluted earnings per share; its reported results are cut off. Confirmed
3. Watch for evidence that Nvidia’s customers continue buying its products; weaker demand could reduce sales and cash available, even if leadership changes do not disrupt operations. Analyst inference

Evidence

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