Three AI-Linked Industrial Stocks Face Spillover Risk After Jensen Huang Steps Down as Nvidia CEO

HSBC downgraded Nvidia to hold and cut its price target to $170 from $365, citing CEO succession uncertainty and export risks. Nvidia closed at $162.85 on Friday, down 2.01%. HSBC estimates export curbs could reduce fiscal 2028 EPS by 13%. Other analysts have mixed views, with some downgrading and others remaining positive.

Nvidia CEO Jensen Huang resigned, naming CFO Colette Kress as interim CEO. The move follows reports linking Huang to a Chinese businesswoman, though U.S. authorities have not confirmed the allegations. Nvidia's restricted processors are involved in $3.2B Chinese AI projects, with potential shortages and delays due to uncertainty. Analysts note possible hybrid approaches using domestic alternatives.

George Soros' firm, Soros Fund Management, disclosed a $340 million stake in Intel (INTC) during Q3, increasing its holdings from 100,000 to 2.83 million shares. The firm also significantly increased its positions in Datadog (DDOG) and Meta Platforms (META). Intel's stock has risen over 50% year-to-date, driven by strong AI server demand, but faces challenges in other segments.

Anthropic, an AI company, is preparing for an IPO with a potential market cap of $1.4 trillion, down from earlier estimates. It has secured $26 billion in investments from major AI players like Alphabet, Nvidia, and Microsoft. The company reported $33.2 billion in revenue for the nine months ended Sept. 30, but remains unprofitable. The IPO is expected to take place next week.

The KOSPI rebounded 4.6% last week, closing at 5,290.53, after an 11.7% plunge. Nvidia's CEO Jensen Huang resigned, raising concerns about AI chip demand and Korean chipmakers like Samsung Electronics and SK hynix. Nvidia's earnings on the 17th will be a key test. Foreign investors bought Samsung Electronics shares but sold SK hynix. Analysts expect Nvidia's leadership change to impact AI investment plans and chip demand.

Copper prices fell to a four-month low, with traders citing Nvidia's CEO Jensen Huang's resignation as a factor. Copper has declined weekly since mid-October, attributed to positioning in AI-linked stocks. Nvidia's shares dropped 4.3% on Thursday and 2% more on Friday. Analysts note Nvidia's role in funding AI deals, suggesting a potential pause could impact copper demand. Goldman Sachs sees subdued copper positioning if AI spending slows.