Major Wall Street financial institutions have yet to respond on Monday (9th) to reports that NVIDIA (NVDA.US) is investigating whether CEO Jensen Huang disclosed company or national security secrets during an extramarital affair, possibly because the incident emerged over the weekend or because the market is still awaiting further developments.

RBC Capital Markets did not mention Huang in its research report on NVIDIA. However, institutions that have commented generally focused on whether Huang will remain as CEO. Investors were apparently concerned, with the stock sliding 5% in early pre-market trading.

Dan Ives of Yorkville Ives said that Huang faces a clear risk of being removed as CEO, depending on the board's investigation findings, which would pose risks to the share price as he is highly important to NVIDIA's global narrative and strategy.
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SK hynix Inc. (SKHY.US) said it is preparing to expand its workforce in the US, with more senior executive appointments and a restructuring of its US business around December 3 to strengthen ties with major US clients including NVIDIA (NVDA.US).

SK hynix appointed President of Development Ahn Hyun to a newly created senior executive role overseeing its US operations.
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Alphabet Inc. (GOOGL.US) has recently discussed the possibility of issuing HKD and SGD bonds for the first time, gauging Asian investors' risk appetite after global markets suffered a sell-off in AI-related stocks, Bloomberg, citing sources, reported.

Alphabet held talks with banks and investors this month regarding the bond issuance plan, sources divulged. The company is weighing issuance of HKD bonds equivalent to USD1-1.5 billion, as well as approximately USD1.5 billion of SGD bonds. Proceeds will be used for general corporate purposes.
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NVIDIA (NVDA.US) CEO Jensen Huang admitted having an extramarital affair with a woman, while US officials said the woman worked for a Chinese intelligence agency.

In response, Chinese Foreign Ministry spokesperson Guo Jiakun said the so-called China spy allegations are entirely groundless and defamatory.
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Chinese Foreign Ministry spokesperson Guo Jiakun said China's position on the issue of US chip exports to China has been consistent.

Earlier market rumors had it that 600,000 high-end chips from NVIDIA (NVDA.US) are currently in Hong Kong and are about to be shipped to mainland China, while China is approving imports of those chips.
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Asian tech stocks broadly advanced on Monday (9th), recouping losses from last Friday (6th), while the market also focused on the investigation involving NVIDIA CEO Jensen Huang.

Taiwan equities led Asian markets higher, with the Taiwan Stock Exchange Weighted Index at one point surging 6.7%. It closed up 1,960 points, or 4.9%, at 41,661. TSMC (2330.TW) and Hon Hai Precision Industry (2317.TW) drove the market higher, with TSMC closing up 4.7% and Hon Hai rising 6.5%.

Other chip stocks in the region also went up, with South Korea's Samsung Electronics and SK Hynix gaining 0.6% and 1.4%, respectively, by the close. Both companies are suppliers to NVIDIA.

According to reports, South Korea's Second Vice Minister of Science and ICT, Ryu Je Myung, said that Seoul expects deliveries of contracted NVIDIA GPUs to remain unaffected despite the controversy.

Ryu also said the ministry is closely monitoring developments and discussing pricing and delivery schedules with NVIDIA Korea.

Although NVIDIA shares rose during trading last Friday, Reuters reported on Monday that NVIDIA futures on the Hyperliquid exchange and after-hours share trading on the Blue Ocean system indicated the stock was trading at about USD180.3 per share, around 3.4% below last Friday's Nasdaq closing price of USD186.64.
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The global tech sector's AI industry chain is once again vexed by concerns over politics, data centers, funding and a potential Anthropic listing, CLSA said in a research report. However, the broker said such fears seem overdone, and analyzed the situation through four themes: politics, gigawatt capacity, trillion-dollar funding requirements and IPOs.

Both political parties of the US have concerns over data centers, but most lean toward implementing guardrails rather than a complete halt, providing relative relief, CLSA noted. Data centers under construction in the US amount to about 150 gigawatts, while regions outside the US and China account for another approximately 46 gigawatts, bringing the total to about 200 gigawatts.

While the market worries that there may be nowhere to install chips, the broker instead believed chip supply may be insufficient. From now until 2030, new AI-related demand may reach about 110 gigawatts, and some project delays could help balance overly aggressive data center plans and the production capacity of TSMC (TSM.US).

On funding, the broker estimated that to achieve double-digit returns on capital, cloud computing revenue may need to rise from about USD450 billion in 2026 to around USD3.5 trillion in 2035, equivalent to shifting only about another 175 bps of global GDP. In comparison, peak spending on computerization and telecom terminals in the past reached about 4.5% and a combined 7.2% of global GDP respectively, suggesting that claims that "money will run out" are excessive.

Sentiment has been affected by a potential Anthropic IPO, the broker said, while estimating that Anthropic accounts for about 11% of global tokens (excluding China), vs about 27% for OpenAI. The market appears to be devoting 100% of its attention to concerns over a player with roughly a one-tenth market share. CLSA also listed more than 100 new AI laboratories with combined private valuations exceeding USD650 billion, indicating that the industry's competitive landscape remains unsettled.
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TSMC (TSM.US) is weighing an expansion of its business scope into advanced memory chip manufacturing, further increasing its market share in the AI hardware supply chain, The Information, citing sources, reported.

At the request of its largest customer NVIDIA (NVDA.US), TSMC recently began formulating plans to produce a special type of advanced memory chip known as 3D DRAM.
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As SpaceX (SPCX.US) seeks to challenge major wireless carriers such as T-Mobile (TMUS.US) and Verizon (VZ.US), Elon Musk said on Friday that he is open to acquiring a leading telecom operator.

Speaking to billionaire investor Ron Baron at asset manager Baron Capital's annual investment conference, Musk said SpaceX could go very far in competing with telecom giants by leveraging the spectrum licenses it has acquired. The licenses grant the company rights to use specific radio frequency bands.

Musk, CEO of SpaceX, said if they can use spectrum more efficiently than traditional telecom companies, they could eventually acquire those traditional telecom companies and improve their spectrum efficiency by 10x.

His remarks are expected to intensify market discussions over the future development of AT&T (T.US), Verizon and T-Mobile. SpaceX has been actively enhancing its capabilities to provide nationwide wireless services integrating terrestrial and satellite connectivity, supporting mobile phone and internet connections.
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Meta Platforms, Inc. (META.US) Chief Strategy Officer Dave Wehner will leave the company and join AI startup Fireworks as chief financial officer.
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