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- Bernstein halves Nvidia target to $200, the 3rd broker in 2 days to step back over Huang
- CBA’s Chambers sees room for higher US 10-year yields despite the slide in oil prices
- ANZ says RBA hike bets have cooled, but 3.7% core inflation will keep it cautious
- Deutsche Bank sees 3 straight Fed hikes after hot CPI, adding a January move
- 5 forced sellers that can turn a market dip into a rout, and how to spot them
- BoJ’s Asada, who opposed 2 hikes this year, urges caution on pace as rates near neutral
- Google TPUs could gain share from Nvidia turmoil, Bloomberg Intelligence says, eyeing $50B
- ICYMI: OPEC output jumps nearly 2 million bpd toward prewar levels as Saudi production rebounds
- TD Securities sees gold retesting $3,900 as Fed hike bets and a firm dollar bite
- PBOC sets USD/ CNY reference rate for today at 6.7174 (vs. estimate at 6.6797)
- Japan’s Mimura warns yen moves are too rapid as USD/JPY pushes back toward 160
- United Airlines bans AI agents from booking flights: 3 reasons it matters beyond travel
- Japan wholesale inflation speeds up to 7.1%, beating forecasts and firming BoJ hike bets
- UBS sees limited support for a 50bp Fed hike in December despite hot October CPI
- From smuggling indictment to 48% rebound: the Super Micro playbook Nvidia bulls are watching
- Nasdaq futures drop 0.8% as WSJ says Nvidia board is preparing to oust CEO Huang
- Strategy (MSTR) is to be removed from MSCI Global Investable Market Indexes following MSCI’s implementation of a new non-operating company rule.
- Nvidia stock plunges after hours as New York Times reports new Jensen Huang relationship allegation
- Nvidia CEO Huang faces 2nd relationship report as NYT links him to senior executive
- Lutnick stalls Trump’s third Nvidia chip diversion crackdown this year, Axios says
- Anthropic IPO oversubscribed several times ahead of record $90 billion listing
- US stocks rally as AI shares rebound
- investingLive Americas FX news wrap 11 Nov. It’s a Wrap: Dollar climbs as stocks rise and oil fades
Summary:
- Nvidia fell about 7% after hours as reports said its board is weighing whether to oust CEO Jensen Huang. Bernstein, Baird and Morgan Stanley stepped back from the stock
- Rival chipmakers AMD and Broadcom gained after hours, and Nasdaq 100 futures fell about 0.8%, against about 0.3% for S&P 500 futures
- Asian chip stocks held up: Samsung rose almost 2% and SK Hynix 0.8%, while the Nikkei and Topix edged higher and the Hang Seng fell almost 1%
- Japan’s October producer prices beat forecasts at 7.1% y/y, BoJ board member Asada urged caution on the pace of hikes, and Mimura warned that FX moves are too rapid, with USD/JPY near 160
- Deutsche Bank now sees three straight Fed hikes, UBS sees two, and CBA expects higher US yields
- Oil eased, with OPEC output back near prewar levels, and Strategy slipped after MSCI confirmed its removal from global indexes
Nvidia
Nvidia dominated the session. Its shares were around $161 in after-hours trading, down about 7%, after The Wall Street Journal reported that the company’s board is preparing to oust chief executive Jensen Huang. Reuters said the board was meeting on Wednesday to decide his future, and no decision had been announced at the time of writing. The reports followed a New York Times account that Huang had a relationship with Kimberly Powell, an executive who reports to him. The board was already investigating his ties to a businesswoman whom US officials identified as a Chinese intelligence asset.
Wall Street analysts have moved quickly. Bernstein’s Stacy Rasgon downgraded Nvidia to Market Perform and halved his price target to $200. He left his earnings forecasts unchanged and cut the valuation multiple instead, saying AI demand remains very strong but that the leadership risk is not yet fully understood. Baird had already downgraded the stock to Neutral with a $200 target, and Morgan Stanley also stepped back.
The selling has not hit the whole AI trade evenly. Rivals AMD and Broadcom rose after hours. Bloomberg Intelligence said Google’s TPU chips could win share if customers diversify away from Nvidia, and it sees TPU sales topping $50 billion in 2027. Super Micro Computer, CoreWeave and Oracle, which depend heavily on Nvidia hardware, fell. Nasdaq 100 futures were down about 0.8%, against about 0.3% for S&P 500 futures.
The calendar next week is busy. Nvidia reports results on November 17, three House committee chairs have requested a briefing with Huang on November 18, and Anthropic’s market debut is expected on November 19, with Nvidia among its private placement buyers.
Asian equities
Asia’s chip supply chain held up better than US futures suggested it might. In Seoul, Samsung Electronics rose almost 2% and SK Hynix gained about 0.8%, helping the Kospi edge up about 0.4%, although the tech-heavy Kosdaq slipped about 0.8%. In Tokyo, the Nikkei 225 rose about 0.25% to around 61,400 and the Topix gained about 0.5%. Hong Kong’s Hang Seng fell almost 1%, while the Shanghai Composite added about 0.2%. Overall, the moves suggest investors are treating the Nvidia shock as a governance problem specific to the company, not a verdict on AI demand.
Japan
Japan’s corporate goods price index rose 7.1% from a year earlier in October, above the 6.5% forecast. Oil, chemicals, steel and utilities drove the gain, and a weak yen lifted yen-based import prices by about 25% y/y. The data strengthen the case for a Bank of Japan hike in December.
Not everyone on the board is in a hurry. Policy board member Toichiro Asada, who voted against both of this year’s hikes, said in a speech that policy is already within the estimated neutral range and that the Bank should give due consideration to the pace of further increases.
Currency officials stepped up their warnings. Atsushi Mimura, vice finance minister for international affairs, said currency moves over recent days had been too rapid. USD/JPY traded in a narrow range just below 160, around 159.70, a level that preceded actual intervention twice this year.
US rates and the Fed
Banks continued to adjust to Tuesday’s hot US inflation report. Deutsche Bank expects quarter-point Fed hikes in December, January and March. UBS keeps a base case of hikes in December and March and sees limited support for a 50 basis point move, despite Governor Christopher Waller raising the idea. Commonwealth Bank of Australia said Treasury yields have room to rise, as growth and Fed hike expectations outweigh the drag from lower oil prices.
Oil and gold
Oil eased, with Brent down about 1.4% to around $91.40 and WTI down about 1.3% to around $85.40. OPEC data showed the group’s crude output rising by nearly 2 million barrels a day in October, close to prewar levels, as Saudi Arabia lifted production to around 10.6 million barrels a day using pipelines and other workarounds. Flows through the Strait of Hormuz remain far below normal. Spot gold slipped about 0.3% to around $3,987 an ounce, holding below $4,000 as Fed hike expectations weigh on the metal.
Strategy
Strategy shares were around $119 after hours, down about 2.6%, after MSCI confirmed it will remove the bitcoin treasury company from its global indexes, including the MSCI USA Index, after the close on November 30. It is the first removal under MSCI’s new rule excluding non-operating companies. Analysts have estimated selling by index-tracking funds at about $2.8 billion. Bitcoin was little changed at around $73,800.
This article was written by Eamonn Sheridan at investinglive.com.
