Bloomberg Surveillance 11/13/2026

NVIDIA Leadership Collapse and Scandal Details

• Jensen Huang, founder and CEO of NVIDIA, has been ousted following revelations of multiple extramarital affairs, including one with Alice Huang (Wang), a woman linked to a suspected Chinese intelligence operative.
• Bloomberg reporting indicates a Shanghai data center was powered by banned NVIDIA chips smuggled by Megaspeed, a company linked to Alice Huang, constituting a breach of U.S. trade restrictions.
• CFO Colette Kress has been appointed as interim CEO; insiders report she previously questioned Jensen Huang's aggressive deal-making and financing plans.
• President Donald Trump has publicly defended Huang, stating he believes Huang is a "fine man" and that his primary concern is his family, despite the national security implications.
• Senate Banking Committee Chair Tim Scott has issued a subpoena threat if Jensen Huang does not testify regarding the export control violations.

Government and Regulatory Scrutiny

• Commerce Secretary Howard Lutnick faces intense scrutiny over his department's lax oversight of chip export controls; NBC News reports he has agreed to testify before the Senate.
• Democratic Senators Chris Coons and Elizabeth Warren are urging the Trump administration to preserve all records related to NVIDIA's chip sales and export licenses.
• Former White House trade official Kate Kaloukwicz warns that bipartisan pressure will mount on the Commerce Department to rescind favorable export licenses and tighten end-user restrictions.
• Concerns are rising regarding the U.S. government's equity stakes in NVIDIA (via a deal with Chipsoul) and whether these investments created conflicts of interest or compromised national security enforcement.
• Legislation such as the "AI Overwatch Act" and "Chip Security Act" is being considered to increase congressional control over export licenses and require stricter company tracking of chip flows.

Market Reaction and Valuation Shifts

• NVIDIA's market capitalization has dropped approximately $1.7 trillion in the past month, falling to its lowest valuation multiples since 2013.
• Analyst Dan Ives (Yorkville Ives) cut his NVIDIA price target from $300 to $225, acknowledging the loss of the "cult of personality" but maintaining the $3–$4 trillion AI CapEx thesis remains intact.
• Gil Luria (D.A. Davidson) cut the NVIDIA target to $200, citing risks to future sales to Asia and a potential freeze on the $500 billion ecosystem financing backstop that relied on Huang's relationships.
• Despite the turmoil, NVIDIA shares have shown signs of stabilization in pre-market trading, with retail investors reportedly pouring capital back into the stock, calling it a "buy the dip" opportunity.
• Analyst Doug Clinton (Deepwater) views the recent NASDAQ correction of over 14.5% as a capitulation point, predicting a recovery period of approximately 50 days once leadership is stabilized.

Microsoft Global Outage

• Microsoft is experiencing a prolonged global outage affecting Outlook, Teams, Copilot, and other services, lasting nearly 24 hours and impacting over 70 countries.
• The outage has forced businesses, hospitals, and government agencies to revert to legacy communication methods, including fax machines and landlines, disrupting earnings reports and daily operations.
• Microsoft reports early signs of stabilization, though the root cause remains under investigation with no definitive timeline for full restoration.
• The incident has highlighted vulnerabilities in centralized cloud infrastructure and added to regulatory scrutiny regarding Big Tech's reliability.

Macroeconomic Trends and Federal Reserve Policy

• U.S. Producer Price Index (PPI) data released later in the session came in softer than expected (0.3% month-over-month), offering relief compared to the prior hot CPI print, though year-over-year inflation remains elevated at 6.5%.
• Treasury yields saw a reversal, with the two-year yield dropping approximately 4 basis points to 4.85%, as markets recalibrated away from pricing in a 50 basis point December rate hike.
• The U.S. Dollar has strengthened significantly, hitting levels not seen since April 2025 against the Euro and approaching the 160 psychological barrier against the Japanese Yen.
• Federal Reserve officials, including Governor Waller, have hinted at the possibility of aggressive tightening (up to 50 basis points), though the softer PPI data has led many analysts to expect only 25 basis point hikes.
• Market strategists note a defensive rotation, with capital moving into staples and healthcare, potentially signaling an underlying slowdown in growth despite resilient consumer spending.

Broader Tech Ecosystem Developments

• Anthropic IPO: The AI company Anthropic is targeting a valuation of $1.4 trillion with its upcoming IPO, seeing the offering approximately six times oversubscribed.
• SpaceX/Tesla Merger: Sources indicate talks between Elon Musk's SpaceX and Tesla are progressing, with a potential announcement possible as early as December, potentially resulting in the largest corporate merger in history.
• AI Infrastructure Risks: Analysts warn that the loss of Jensen Huang may disrupt the "circular financing" deals backstopping data center buildouts (e.g., in Ohio and Texas), potentially slowing the pace of AI infrastructure deployment.
• Sector Rotation: While NVIDIA remains the "central bank of AI," market leadership is broadening, with the Nasdaq 100 seeing gains outside the top mega-cap tech names as investors assess the long-term trajectory of the AI trade.