November 13, 2026, (Inside AI) — Asian equities steadied on Friday after a week of turbulence triggered by the resignation of Nvidia CEO Jensen Huang, following revelations of extramarital affairs, including one involving a suspected Chinese spy. The news has cast a shadow over the global AI boom that Huang helped build.
Huang stepped down on Thursday, plunging the chipmaker into crisis and sending shockwaves through the AI industry. Nvidia shares fell 3% in extended trading, while customers like South Korea's Naver extended declines, dropping 2.75% on Friday. The broader MSCI Asia-Pacific index outside Japan rose 0.26%, reversing some of its 1.3% fall from the previous session. South Korea's Kospi climbed 2.35% and Japan's Nikkei added 1.4%.
Huang's exit comes at a critical juncture for US chip export policy and the AI supply chain. His push to preserve access to the Chinese market and close ties with US President Donald Trump had positioned him as a key architect of the industry's global strategy. Analysts at JPMorgan warned in a note: "His departure leaves a vacuum that will be difficult to fill... We do not assume existing commitments change, but new deals could take longer or require more compensation as investors look for reassurance about Nvidia's role."
The fallout extends beyond Nvidia. Jon Zauderer, Citi's head of specialist sales and a TMT specialist, said competitors such as AMD, Arista and Broadcom could benefit. "If you think about the uncertainty that's created about a potential management change, investors are going to look for alternatives," he said.
The crisis has also drawn political attention. US Senate Banking Committee Chairman Tim Scott sent letters on Thursday to Commerce Secretary Howard Lutnick and Huang, asking them to testify over recent developments at Nvidia. The move signals growing scrutiny of the company's role in national security and trade policy.
Meanwhile, the Federal Reserve is weighing an outsized 50-basis-point rate hike next month. The 2-year Treasury yield hit a one-month high of 4.8920%, and the 10-year yield reached a three-week high of 5.1433%. Investors now see a 14.5% chance of a jumbo hike in December, up from zero a week ago, according to the CME FedWatch tool. Manusha Samaraweera, fixed income investment director at Capital Group, said: "Right now, the US Fed has three hikes priced in for effectively the next 12 months... The (most recent) CPI print obviously was a bit hotter than expected. If those kinds of prints continue to happen, we can definitely see the Fed hiking three more times. It's very within the realms of possibility."
The dollar climbed 0.9% for the week, its biggest gain in over a month, while the yen languished near 160 per dollar, keeping traders alert for intervention from Tokyo. The Federal Reserve Bank of New York disclosed it bought 79.4 billion yen ($497.37 million) in the spot market on July 31, selling euros from the Exchange Stabilization Fund as part of a joint US-Japan intervention this summer.
Concerns over the AI outlook spilled into metals, with London copper hitting a four-month low on fears of weaker demand. Shares of Australian-listed miner Capstone Copper Corp fell more than 5% on Friday. Oil prices also slipped, with Brent crude down 0.3% to $95.45 a barrel and US crude at $88.39, after attacks on Saudi energy infrastructure escalated and shipping disruptions through the Strait of Hormuz threatened global oil flows. Spot gold rose 0.3% to $3,888.01 an ounce.
The recovery in global equities follows last week's market meltdown sparked by the Republicans' electoral drubbing, which stoked fears that tighter regulation could slow the AI infrastructure buildout that has helped send stocks to record highs this year. Nasdaq futures and S&P 500 futures rose more than 0.2% each, while EUROSTOXX 50 futures fell 0.37%.
Huang's resignation raises questions about the future of Nvidia's role in GPU financing and infrastructure deals, where the company has been a supplier, investor, or provider of contractual support. The JPMorgan note added: "The bigger implications are for the rest of the AI trade, particularly GPU financing and infrastructure deals in which Nvidia would presumably be involved as a supplier, investor or provider of contractual support."
As the AI industry absorbs the shock, the focus now shifts to Nvidia's interim leadership and whether the company can maintain its strategic partnerships. The Senate hearing, if it proceeds, could further expose the company to political pressure and regulatory scrutiny. For now, investors are watching for signs of stability in the AI trade, even as the broader market grapples with Fed policy and geopolitical risks.
Shamil has a low tolerance for AI that only works in controlled demos. He covers agentic systems and generative AI with the skepticism of someone who has seen too many “revolutionary” tools quietly disappear six months after launch.
