Nvidia's Jensen Huang admitted an affair with a manager at Megaspeed, a company suspected of smuggling chips to China, triggering a board probe.
The selloff's lessons: obvious bets are most dangerous, leveraged ETFs can lose a third in a day, and SOXX trades at 14x earnings.
Berkshire's operating profit fell 5.8% to $12.7bn as Greg Abel bought back $9.6bn in stock.
Nvidia board investigates Huang affair as shares slide
Funding and deals
Anthropic. Its IPO roadshow could start Tuesday at a $1.2tn to $1.3tn valuation, down from $2tn in early October, on $17bn quarterly revenue .
News
Nvidia board probes Huang affair. Nvidia's board opened an investigation and sees no leaked secrets after Jensen Huang admitted an affair with Alice Wang, a Megaspeed manager suspected of spying for China and smuggling Nvidia chips . Shares fell to $180, a $140bn drop .
US stocks lose $2.8tn in a day. Investors celebrated the Democratic midterm win on Wednesday, then US stocks lost $2.8tn on Thursday, the most ever in a day . Goldman's panic index hit 9.57 of 10, a swing from relief to panic in under 48 hours .
Berkshire profit falls 5.8% without Buffett. These are the first results since Buffett gave up the chairman role. Operating profit fell 5.8% to $12.7bn, insurance down 43% and GEICO 45%, with $377bn in cash . Holger Zschäpitz calls Berkshire the ultimate anti-AI stock .
Nvidia earnings test arrives on 17 November. Nvidia reports on 17 November, with $109bn revenue expected, up 91%, and the stock trading under 20 times earnings . The question is whether customers can keep paying for their chip orders .
US inflation print sets up December Fed test. October inflation lands Tuesday, the last before the Fed meets on 9 December, with September at 3.7% and a December rate rise 77% priced in . Friday's jobs report added 150,000 positions, far more than expected .
Chip fund SOXX trades at 14 times earnings. SOXX traded at 33 times earnings in June and now trades at 14 times, the cheapest since late 2022, with analysts expecting 51% profit growth . Holger Zschäpitz calls it his most important lesson, with expensive suddenly cheap .
Leveraged ETFs raise $15bn in October. Leveraged ETFs raised more than $15bn in October, and a triple-levered chip fund lost over a third on Thursday . A third lost needs nearly 60% to recover .
HSBC lists China robotics ETF on Xetra. The HSBC MSCI China Robotics ETF trades on Xetra as BOTS and charges 0.5% a year . China installed 295,000 industrial robots in 2024, half the world's total, but its robotics shares are down 41.8% in five years .
Democrats to target chip exports. Democrats want to take aim at chip exports in the new Congress, after a short seller claimed in May that up to 20% of data centre revenue reaches Chinese users indirectly .
Midterms bring 38 votes on data centres. Midterm voters decided 38 ballot measures on data centre restrictions, and Georgia's incoming governor wants to stop new ones by decree . Nando Sommerfeldt notes Texas's incoming governor wants approved data centres finished .
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