Nvidia is navigating a turbulent week as a congressional probe into CEO Jensen Huang's alleged ties to a foreign intelligence investigation shakes investor confidence. The probe, reportedly initiated by an AI company and first reported by Bloomberg, caused Nvidia shares to drop 8% at market open. While the company has not commented on the investigation, the fallout is rippling through the broader tech sector and raising questions about AI trade risks.
Other tech giants are feeling the ripple effects. Amazon, Alphabet, and Microsoft each rose 1 to 2 percent as tech stocks recovered from midterm losses. Dan Farley from State Street Investment Management argues that while AI selling may continue, the broader investment cycle will not be derailed. He views the Huang probe as a near-term risk rather than a long-term threat to AI spending.
Google used the moment to announce two new variants of its in-house AI chips, designed for handling sensitive data and large workloads. The timing is notable given the ongoing Nvidia security concerns. Meanwhile, Kakao Mobility revealed a partnership with Nvidia to deploy two Nvidia DRIVE AGX Thor chips in Kia's PV5 vehicle for Level 4 self-driving capability, though neither company disclosed costs or a launch timeline.
On the infrastructure side, Taiwanese AI server maker Wiwynn reported strong data center demand but warned that tight raw material supply will create sales fluctuations. The company approved capital increases of $250 million in its US subsidiary and $200 million in its Malaysian subsidiary. Wiwynn is also monitoring whether US midterm election results could impact data center policy. COP31 further highlighted how AI data centers and nuclear power are becoming central to global energy and climate investment discussions.
In AI tooling and innovation, AvaTrade launched a new AI-powered trading platform that draws on billions of historical trades to deliver fundamental and technical analysis. StockASkill introduced a local-first AI agent system that slashes cross-sectional screening latency from over 25 seconds to under 0.5 seconds across 5,400 equities. Separately, researchers found that parallel agent teams — running many small AI teams simultaneously and keeping the best result — outperform single large teams on most tasks at equal cost. Nexawork AI also entered the market with custom software for Malaysian SMEs starting at RM19,900.
Key Takeaways
- <ul><li>Nvidia shares fell 8% at market open after a probe into CEO Jensen Huang's alleged foreign intelligence ties, reported by Bloomberg and initiated by an AI company.</li><li>Amazon, Alphabet, and Microsoft each gained 1 to 2 percent as tech stocks recovered from midterm losses tied to AI regulation fears.</li><li>Google announced two new in-house AI chip variants designed for sensitive data and large workloads, timed amid Nvidia security concerns.</li><li>Kakao Mobility and Nvidia partnered to use two Nvidia DRIVE AGX Thor chips in Kia's PV5 vehicle for Level 4 self-driving systems in Korea.</li><li>Wiwynn approved $250 million in capital increases for its US subsidiary and $200 million for its Malaysian subsidiary to support growing AI server demand.</li><li>Dan Farley from State Street says the AI investment cycle remains intact despite near-term volatility from the Nvidia probe.</li><li>Parallel agent teams using a 27B model and 100 agents beat single large teams on most tasks at equal dollar cost, improving AI inference performance.</li><li>AvaTrade launched an AI-powered trading platform offering fundamental and technical analysis across forex, shares, commodities, and indices.</li><li>StockASkill reduced cross-sectional screening latency by over 95 percent, from 25 seconds to sub-0.5 seconds, across 5,400 equities using a DuckDB-based engine.</li><li>COP31 will address AI data center energy demands, nuclear power's role in the energy transition, and climate resilience investment needs.</li></ul>
Nvidia CEO affair and spy probe highlight AI trade risks
Nvidia CEO Jensen Huang faces a congressional probe over his relationship with an alleged Chinese spy. The situation raises concerns about U.S. national security and the AI trade. Market impacts are being watched closely as the investigation unfolds.
Jensen Huang scandal adds uncertainty to AI trade
Jensen Huang's spy affair scandal and Nvidia probe are making the AI trade shakier. Investors fear further sell-offs in the tech sector. The scandal adds new risks for Nvidia shareholders already dealing with market volatility.
AI selling may continue but will not derail investment
Dan Farley from State Street Investment Management says the AI selling may not be finished. He believes the AI investment cycle will not be derailed. He also calls the probe into Jensen Huang's alleged spy ties a near-term risk for shareholders.
Nvidia stock drops 8% amid foreign intelligence probe
Nvidia stock fell 8% at market open after the company announced a probe into reports that CEO Jensen Huang was targeted by a foreign intelligence investigation. The probe was reportedly initiated by an AI company and first reported by Bloomberg. Nvidia has not commented on the investigation.
Tech stocks recover after midterm losses amid Nvidia probe
Tech firms rose to recover some losses from the previous week's AI regulation sell-off. Nvidia shares were down 4.5% in pre-market trading due to a probe into CEO Jensen Huang over alleged insider trading. Amazon, Alphabet and Microsoft all rose 1 to 2 percent.
Parallel agent teams improve AI performance
Test-time scaling improves performance of a fixed model by spending more computation at inference. The new method, parallel agent teams, samples many small teams in parallel and keeps the best team's result. With a 27B model and a budget of 100 agents, parallel teams of ten beat parallel agents on 10 of 12 tasks and beat one team of 100 on all four tasks where large teams were tested. At equal dollar cost the same parallel teams beat a frontier model on half the tasks.
Wiwynn sales up 62.9 percent in third quarter
Taiwanese AI server maker Wiwynn said third-quarter profit grew more slowly than sales. Recent demand from data centers remains strong, but tight raw material supply will cause fluctuations in monthly sales. The board approved issuing up to 18 million common shares for a Global Depositary Receipt offering to replenish working capital. It also approved capital increases of US$250 million in its US subsidiary and US$200 million in its Malaysian subsidiary. Wiwynn's October sales sit alongside its peers' in the industry. The midterm question Wiwynn raises is whether US midterm results will impact data centers. Wiwynn says it will monitor policy implications and assess their potential impact.
AvaTrade unveils AI-powered trading platform
AvaTrade unveiled a new AI-powered proprietary trading platform. The system draws on two decades of operating history and billions of executed trades. It uses AI to deliver both fundamental and technical analysis, generating trading signals and market insights. Clients can trade forex, shares, commodities and indices from one place. The platform aims to serve newcomers with a simple interface while giving seasoned traders more sophisticated capabilities. Personalisation is a central feature, allowing users to drag and drop widgets and reorganise tabs and windows.
AI and nuclear power drive COP31 agenda
COP31 puts the investment needs of AI data centers, climate resilience, electrification, and Europe's nuclear expansion in focus. The conference will bring together governments, businesses, and civil society to discuss and agree on necessary investments to meet the Paris Agreement's goals. The agenda includes the role of nuclear power in the energy transition, the potential of AI in reducing greenhouse gas emissions, and the investment needs of AI data centers and climate resilience. The event will feature high-level panel discussions and speakers.
StockASkill for intelligent stock selection
StockASkill is a local-first AgentSkill for autonomous AI agents and quantitative researchers. It is engineered as a specialized Quant Co-Processor for autonomous AI agents and quantitative researchers. The system embeds a columnar DuckDB OLAP engine over 42.44 million historical price records and 186,432 financial disclosures spanning 26 years across China A-shares, Hong Kong, US equities, and ETFs. It reduces cross-sectional screening latency across 5,400+ equities from over 25 seconds to sub-0.5 seconds, a 95 percent-plus reduction. The system formalizes an end-to-end mathematical pipeline integrating a 7+1 factor alpha model, an SLSQP convex optimizer under smooth CVaR drawdown surrogates with exact path projection, and dynamic 100-share board lot integer quantization.
Kakao Mobility and Nvidia partner on Level 4 self-driving tech for Kia vans
Kakao Mobility will use two Nvidia DRIVE AGX Thor chips in Kia's PV5 vehicle to build its Level 4 self-driving system. The system will combine Kakao Mobility's AI models with Nvidia's computing and safety technology. Both companies aim to meet global standards and bring a safe Level 4 era to Korea. They did not share costs, vehicle numbers or a launch date.
Google unveils new AI chips amid Nvidia security concerns
Google announced two new variants of its in-house AI chips. The new systems are designed for handling sensitive data and large workloads. The release comes as Nvidia faces an investigation into reports that its CEO Jensen Huang was targeted by a foreign intelligence effort.
Nexawork AI launches custom software for small businesses in Malaysia
Nexawork AI launched custom software for small and medium-sized enterprises in Malaysia starting at RM19,900.00. The software includes data analytics, process automation and predictive analytics. The programme offers a full refund if the delivery date is missed. It is designed to be user-friendly and customizable for each business.
Sources
- Nvidia's importance to U.S. national security and AI trade highlighted in CEO affair and spy probe
- Jensen Huang’s ‘spy’ affair scandal and Nvidia’s (NVDA Nasdaq) probe will make the AI trade even shakier
- AI Pullback won’t derail the investment cycle, says strategist
- Nvidia slumps after a 'foreign intelligence' probe initiated by AI company into CEO Jensen Huang
- Tech firms claw back some losses after midterms rout, eyes on Nvidia
- Test-Time Compute Scales Better with Parallel Agent Teams
- Wiwynn Sales Up 62.9%; AI Server Maker Watches US Midterms
- AvaTrade unveils AI-powered proprietary trading platform
- AI, Nuclear Power, And Climate Financing Drive COP31 Agenda
- StockASkill: A Local-First AgentSkill for Intelligent Stock Selection
- Nvidia Hardware to Run Kakao Mobility’s Own Level 4 Driving AI in Kia Vans
- Google Pushes New AI Chips. Why There Could Be an Opening.
- Nexawork AI Launches Custom Software for SMEs From RM19,900.00
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