Chips and yields

The week started with a rebound across most technology stocks, except Nvidia, where losses neared 6% at one point following reports of Jensen Huang’s affair with a Chinese woman whom US authorities reportedly suspect of spying for Beijing. One reason Nvidia fell so much is that it has positioned itself as the mascot, the face of the AI trade. The company is at the epicentre of the AI boom, with the most powerful—and premium—product range, financial deals, investment support and broader commitments involving many companies to keep orders coming. And CEO Huang has been a central figure at Nvidia: besides having a far-reaching vision of what AI will look like—and therefore staying a step ahead in terms of business decisions—he has also been involved in politics and helped shape decisions regarding the White House’s China policy within the broader technology war.

The risk is: if he has to leave, who will replace the man in the black leather jacket, and what will the broader implications be for Nvidia’s sales, earnings and its ecosystem? His departure remains hypothetical, however, and Nvidia’s board has expressed confidence in his leadership while launching an independent investigation.

What does it mean for Nvidia’s stock price?