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Q4 2026 AITM MARKET ADVISORY & STRATEGY · WEEKEND EDITION

AI Stocks Stay Under Pressure as Nvidia Turmoil Meets Rate-Hike Fears

Nvidia’s CEO resigned on Thursday, and on Friday the sell-off spread to other chip makers, with AMD down about 10% and the Nasdaq off 0.9% at the close. Nvidia ended the week about 13% lower, below a $4 trillion market value. Rising bond yields and expectations of a December rate rise added to the pressure, and Nvidia reports results on Tuesday 17 November. Here is what it means for your AI strategy. Market figures are from Friday’s close. Next update: Monday 16 November.

−13% Nvidia · week to Fri 13 Nov close
$186.64 to $162.85
−10% AMD · Fri 13 Nov close
post-Huang chip rally unwinds
−0.9% Nasdaq · Fri 13 Nov close
chip sell-off spreads
5.1% US 10-year yield · Fri 13 Nov
rate-hike fears weigh on tech
Tue 3 NovMidterm vote
Thu 5 NovAI rout
Fri 6 NovAI & chip rebound
Sun 8 NovNvidia probe opens
Wed 11 NovCoreWeave recovery
Thu 12 NovHuang resigns
Fri 13 NovChip sell-off spreads
The Headline Risk

Reading Politics as One Verdict on AI

Democratic gains in the 3 November midterms lifted the broad market at first, yet AI-exposed stocks fell soon afterwards, so one election result is not a verdict on every part of the sector. Even with new oversight powers, Congress still faces a presidential veto, so sweeping federal AI legislation is far from a given.

The Measured Response

Plan for Scrutiny, Not Sweeping Law

Analysts expect more congressional hearings and investigations, a bigger role for state attorneys general, and tougher local scrutiny of data centres: voters sided against data-centre developments in all but one of 41 local ballot measures, and UBS has flagged nearly a third of expected 2028 data-centre additions as at risk. Nvidia’s turmoil adds a chip-export angle, as the Senate Banking Committee has asked Huang to testify on 3 December and Commerce Secretary Howard Lutnick on 10 December. Lutnick has agreed to appear.

The Silver Lining

Gridlock Buys You Time

A presidential veto makes sweeping federal AI law unlikely, so rules are more likely to arrive gradually, through hearings, state action and local permitting. That gives businesses time to prepare, and a chance to help shape the rules, rather than facing a sudden blanket restriction.

More oversight and investigations expectedState attorneys general activeData-centre permitting under local scrutinyUBS: nearly a third of 2028 data-centre additions at riskSenate Banking hearings requested for 3 and 10 Dec
The Headline Risk

Reacting to Single-Day Swings

In a fortnight the Nasdaq fell 5.5% into correction territory (5 November), bounced 1.1% the next day as chip stocks recovered part of the loss (6 November), saw Nvidia slide again after its board opened a probe, rebounded on CoreWeave’s results (11 November), then slipped again as Nvidia’s CEO resigned (12 November) and the chip sell-off spread on Friday. Yet all three major indexes still finished the week higher, their best week since early August. Daily noise is not a strategy.

The Measured Response

Audit Concentration & Dispersion

Even within AI, outcomes diverged. AMD and Broadcom rallied on Thursday, then sold off on Friday, when AMD fell about 10%, Broadcom about 6% and Intel about 5%. Nebius fell after lowering its revenue outlook and raising capital spending, and Cerebras jumped after raising its outlook. The 10-year Treasury yield ended the week at about 5.1%, up roughly a quarter of a percentage point on the week, markets see a rate rise at the Fed’s December meeting as close to certain, and one Fed official cited demand from the AI data-centre buildout as a source of overheating. Review how much of your portfolio or tech spend rides on a single supplier or theme.

The Silver Lining

The Week Still Ended Higher

All three major indexes finished the week up, their best week since early August, after two separate AI rebounds on 6 and 11 November. CoreWeave and Cerebras both raised their outlooks, a sign that the companies closest to AI infrastructure are still reporting strong demand.

Nasdaq in correction on 5 NovCoreWeave-led rebound, 11 NovChip sell-off spreads, 13 Nov10-year yield about 5.1%Fed decides 9 Dec
The Headline Risk

Single-Vendor AI Dependency

Building critical workflows on one model, one chip supply chain or one pricing plan leaves your business exposed when sentiment, regulation, costs or even a supplier’s leadership shift overnight.

The Measured Response

Regulation-Ready, Model-Agnostic AI

Document your use cases, keep your stack portable, and tie every AI project to a measurable outcome. Teams that do this stay steady while the headlines swing.

The Silver Lining

Volatility Is a Negotiating Window

Credible alternatives exist: AMD and Broadcom rallied on Thursday, and CoreWeave and Cerebras both raised their outlooks this week. When one supplier wobbles, buyers with portable stacks can renegotiate pricing and terms, or move workloads, from a position of strength. Teams that have documented their use cases and tied each project to a measurable outcome can act on that quickly, instead of waiting for the headlines to settle.

Scenario planningVendor-neutral architectureROI metrics from week oneCredible alternatives existRenegotiate pricing and terms
What Is Reported

Key-Person Risk at the AI Bedrock

Nvidia co-founder Jensen Huang resigned as CEO and board member on Thursday 12 November, effective immediately, after 33 years, with no reason given. It followed press reports of two alleged relationships, one with a woman US officials reportedly suspect of working for Chinese intelligence and one with a senior Nvidia executive. Huang has acknowledged an affair with an executive at a Singapore-based chip buyer, and the board says it has no reason to believe national security or company secrets were compromised. CFO Colette Kress is interim CEO while the board searches for a successor. Huang has agreed to brief House lawmakers (date being negotiated), and the Senate Banking Committee has asked him to testify on 3 December. These are press reports and allegations, not findings.

The Economic Read · Speculative

Why It Matters Beyond One Company

Nvidia anchors AI hardware spending, so a leadership change can ripple to suppliers, cloud budgets and chip-export policy. The shares began the week from $186.64 (the 6 November close) and ended it at $162.85, about 13% lower and below a $4 trillion market value. They fell 4.3% on Thursday, touching $148.80 at the open, the lowest since June 2025, before recovering most of the early loss, then fell 2.0% on Friday. HSBC cut the stock to hold, saying it may lag until a succession plan emerges. It was the sixth straight weekly decline, the longest run since 2012. Results come on Tuesday 17 November, the first without Huang. Base case: continued volatility. Scenarios, not predictions: an orderly interim period; a longer CEO search that keeps volatility high; or wider export-policy scrutiny. A clear succession timetable would likely reduce uncertainty.

Huang resigned 12 Nov, effective immediatelyInterim CEO: Colette Kress (CFO)Week: $186.64 to $162.85Nvidia results Tue 17 Nov

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