AI summary
Summary of article:
This week, the market is focusing on the HUDA crisis, whether chip stocks can continue to surge, and the impact on AI investment, mergers and acquisitions, and the situation in the Middle East, Russia and Ukraine after the US midterm elections.
Jen-Hsun Huang Admitted to the employees about extramarital affair and said that he will cooperate fully in the investigation and will continue working.Huida (Nvidia) Chief Executive Officer. Following are the five most notable international and cross-strait news ahead of the market open this week:
Huida announced Sunday that its board of directors will form a committee of independent directors and hire outside lawyers to investigate whether CEO Jen-Hsun Huang is the target of a foreign espionage operation.
The US government suspects that Huang Le, former director of MegaSpeed, was recruited by the mainland’s intelligence agency. HUIDA’s board of directors said there is currently no reason to believe that U.S. national security or HUIDA secrets have been compromised, but that it will review all available information.
After the news was announced, the perpetual futures contract linked to Huida’s stock price on the Hyperliquid platform fell nearly 2.9%, with a low of $180.15. Analysts believe that selling pressure on chip stocks after the midterm elections and the November 17 financial report is still the main variable in the stock price. It is also important to pay attention to whether the United States will tighten chip export controls.
US stocks were steadied by a surge in chip stocks last Friday, but major indexes still closed in the black on a weekly basis, with the S&P 500 posting its biggest weekly decline since April 2025. Faxin and TSMC ADRs rebounded 4.2% and 6.3%, respectively, on Friday, but still fell 12.2% and 7.6% on the week.
Next week’s inflation data, as well as earnings reports from CoreWave, Applied Materials and Cisco, will test whether the rebound can continue. The market expects there to be about an 80% chance of the Fed raising interest rates in December. Higher interest rates could increase the cost of financing AI construction. Investors will also ask whether data center restrictions affect construction schedules, procurement and profitability.
Some strategists believe opportunities will emerge once forced selling pressure subsides, but others warned that Friday’s rally was akin to short covering and bargain hunting, as concerns over AI regulation and spending remain.
The Democratic Party won big victories in the midterm elections, and data center expansion and large-scale mergers and acquisitions are facing more changes. According to Cleanview data, about 40% of the capacity being built in the United States is located in states where new governors have promised to freeze or suspend development. Bloomberg Industry Research estimates that AI infrastructure spending may decline by 5% to 7% in 2027, and up to about 10GW of data center capacity will not be activated as scheduled.
Companies are also accelerating their plans for mergers and acquisitions, trying to take advantage of the fact that the Trump administration is favorable toward transactions. However, with Democrats taking control of both houses of Congress, they can strengthen oversight through investigations and hearings. The idea of merging SpaceX and Tesla would be a test; The decline of AI shares also added to the changes in Marvell’s all-stock transaction to acquire Lumentum.
Trump said on Sunday it was “extremely unlikely” that the United States would need to launch another air strike if progress was made in talks over Iran’s nuclear program and reopening the Strait of Hormuz, but he still maintained the option of using force. Iranian Foreign Minister Arakchi said mediators have not taken any action in recent days following the US midterm elections.
Bloomberg previously reported that Iran is willing to discuss nuclear issues it has refused to touch on in the past and that Qatar is studying solutions. Trump also recently spoke on phone with the head of state of Qatar and demanded a comprehensive ceasefire.
