Bloomberg Television

Nvidia Faces Scrutiny Over US Chip-Smuggling Probe as AI Stocks Rebound

Rashmi Garg, Peter van Driel, Jane Fraser, Abir Abu-Ahmad, Winnie Su, Min Min Lo, Stuart Livingstone, Anthony Halpin, Anthony Stevens, Paul Burkhart

Global equity markets rallied following a record hedge fund sell-off in technology stocks, driven by a surge in Chinese imports and falling oil prices amidst diplomatic hopes regarding U.S.-Iran tensions. Meanwhile, NVIDIA faces escalating governance risks and legal scrutiny over alleged export violations to China and a scandal involving its CEO, which analysts warn could trigger significant market turmoil prior to its upcoming earnings report. In the broader AI sector, Anthropic's IPO valuation was recalibrated downward after filing retraction, even as new model launches sustained investor optimism, paralleled by strong energy sector earnings from Adnoc and shifting geopolitical dynamics in the Middle East.