Nvidia shares slid again as Wall Street closed lower on a hot US inflation report and a scandal that has pulled the AI chipmaker into an FBI investigation. Nvidia is not listed on Bursa Malaysia, but its moves set the tone for the global tech stocks many Malaysian investors follow.
Why Did Nvidia Shares Drop Another 5.5%?
Nvidia fell a further 5.5% after a 4.3% drop on Monday. It slid below Microsoft in market valuation during the session but ended as the world’s second most valuable publicly traded equity, behind Apple.
The scandal is the trigger. CEO Jensen Huang is at the centre of a revelation of an affair with a woman reportedly suspected of being a Chinese spy. The company is now the subject of an FBI investigation.
How Did Hot US Inflation Lift Fed Rate-Hike Bets?
US data showed inflation slowed less than expected in October, and the dollar gained on the report. Fed Governor Christopher Waller called for a swift response and could support a 50-basis-point hike in December.
Dallas Fed President Lorie Logan also signalled strong support for swift action. Joe Zidle, chief market strategist at Cresset Capital Management, said: “This is a recognition that inflationary pressures continue to accelerate and the Fed is going to have to be aggressive.”
Zidle also saw a silver lining in the market’s reaction: “We are seeing a problem and we’re on top of it.” The Fed’s strong stance was seen as a proactive measure, though the AI sector still faces uncertainty.
What Is Anthropic’s US$64 Billion (RM260 Billion) IPO Doing to the AI Trade?
Anthropic disclosed plans to raise up to US$64 billion (RM260 billion) in its initial public offering, with listing expected later this month. The Claude chatbot maker will seek less than the estimated US$100 billion floated just a few weeks ago.
Its securities filing showed revenue soared to US$17 billion in the third quarter, up from US$1.4 billion a year earlier. Kathleen Brooks, research director at XTB, said: “The path is not clear for the AI trade, and it may continue to struggle.”
Fears of a slower AI data centre buildout had already triggered heavy tech selling last week before buyers stepped back in. Readers building an AI watchlist can start with AI Stock Analysis for Malaysians.
Where Did Oil and Asian Markets Move?
Brent crude fell below US$90 a barrel for the first time since August but finished at US$91.49, down 1.2%. Axel Rudolph, chief technical analyst at IG, said Trump signalling that further strikes on Iran may not be necessary, with Strait of Hormuz oil flows increasing, eases supply concerns.
European and Asian stock markets mostly rose on the day, in contrast to Wall Street. Oil also retreated on hopes that a US-Iran agreement may be closer.
Key Takeaways
- Nvidia shares fell 5.5% after a 4.3% drop on Monday, and the company remains the world’s second most valuable publicly traded equity behind Apple.
- Hot US inflation lifted Fed rate-hike bets, with Christopher Waller floating a 50-basis-point hike in December.
- Anthropic’s IPO targets up to US$64 billion (RM260 billion), below the estimated US$100 billion floated weeks ago.
- The FBI investigation into Nvidia is worth monitoring for anyone holding global tech stocks.
- Brent crude finished at US$91.49, down 1.2%, easing supply concerns.
Frequently Asked Questions
Why did Nvidia shares fall this week?
Nvidia shares fell a further 5.5% after a 4.3% drop on Monday. The sell-off followed an FBI investigation tied to a scandal involving CEO Jensen Huang, while hot US inflation data lifted expectations of Fed rate hikes.
How much is Anthropic’s IPO worth in ringgit?
Anthropic plans to raise up to US$64 billion (RM260 billion) in its IPO. That is less than the estimated US$100 billion floated a few weeks earlier, with listing expected later this month.
Is Nvidia listed on Bursa Malaysia?
No. Nvidia is traded on Wall Street, so Malaysian investors gain exposure only through overseas accounts or funds that hold it.
How far did Brent crude oil fall?
Brent crude fell below US$90 a barrel for the first time since August. It finished at US$91.49, down 1.2%, as hopes for a US-Iran agreement grew.
Disclaimer: This article is for general information only and does not constitute investment advice. Do your own research before making any investment decision.
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