Nvidia Scandal Deals Blow to Trump’s Tariff Strategy

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.

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.

Two Nvidia investors urged the board to take time in selecting a permanent CEO and keep Jensen Huang's potential return open. The investors, Gerstner and Baker, cited ongoing questions about recent events. Nvidia's board is conducting an independent investigation into Huang's resignation, which occurred on Nov. 12. The company appointed Colette Kress as interim CEO. Nvidia is set to report Q3 2027 earnings on Nov. 17.