After a stormy week marked by disclosures of extramarital romances involving Nvidia CEO Jensen Huang, which led to his departure and a blow to the global AI boom he helped promote, global markets traded lower on Friday, giving up early gains.
As investors considered a possible 50-basis-point rate hike by the Federal Reserve next month, US Treasury yields rose, with the 2-year yield hitting a one-month high and boosting the dollar. After allegations of affairs, including one involving a suspected Chinese spy, Huang resigned Thursday, sending shockwaves through the AI business and putting the chipmaker in trouble.
Given Huang’s desire to maintain access to the Chinese market and his personal relationship with US President Donald Trump, his departure could significantly affect US chip export policies, as well as the broader AI sector and supply chain. According to UBS analyst Timothy Arcuri, “Jensen has been a singular force in many ways, so the impact will likely be felt far and wide.”Neo-clouds, LLM developers, ecosystem partners, vendors, and other AI sector players now rely heavily on the company for funding, and we have always considered Jensen to be a major driver behind this endeavour. There will probably be a “pause” in the company’s motivation and capacity to pursue major purchases in the near future, even if a new leader eventually adopts a similar strategy.
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