Global equities: Chip and AI risks mount amid Nvidia turmoil – Rabobank

Heavy exposure to the US and AI is leaving global equities vulnerable to turbulence as Nvidia’s board reportedly discusses removing Jensen Huang as CEO following personal and export-control-related allegations, according to Rabobank’s Global Daily. The report examines the potential for disruption to global chip trade and raises questions over US enforcement of export controls. It also considers the wider geoeconomic implications for China, rare earths and regional security dynamics.

Nvidia leadership turmoil raises chip-trade risks

"The Nvidia board is meeting to discuss removing Jensen Huang as CEO after revelations of an affair with a woman alleged to be a Chinese spy, another with a co-worker, and allegations the firm lobbied for and engaged in supplying China with chips despite export controls."

"It’s not just about his leadership. As the Australian Financial Review summarises, “Huang’s love life could throw the global chip trade into chaos.” This affair is seen as a “counterintelligence nightmare” given his close links to Trump, e.g., riding to Beijing on Air Force One."

"Even worse, if the US decision to look the other way on chip sales was a geoeconomic bribe to ensure Chinese rare earths and help in geopolitics, then things could get far more turbulent."

"In short, do we get escalation or de-escalation? Our base case remains the former, and we do not yet see a sustainable path to the latter."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)