NVDA Down, ASX up? Spygate implications…

Resumen detallado

Jensen Huang’s affair with a suspected Chinese spy has Nvidia’s board investigating. Nearly 7% of the S&P 500 rides on the outcome. The ASX, oddly, could benefit.

Now I’m no moralising puritan, so let’s talk markets and price implications.

On Sunday, the Nvidia boss admitted to an affair with Alice Huang (no relation).

She’s a former executive at Megaspeed, a Singapore-based Nvidia customer.

Bloomberg also reports Huang had previously lied about the nature of their relationship.

It says it has no reason to believe national security or company secrets were compromised.

The stock fell 4.27% overnight to US$178.67, which leaves it below where it started the year.

A large slice of any individual stock’s performance can be tied back to the ethereal concept of “governance”.

Governance lives in board minutes and character judgements, well away from the income statement.

Yet the market prices it every single day, and you can put hard numbers on the result.

Inicio del artículo, extracto de Fat Tail Daily. Para leer el resto, abra el artículo en el sitio del medio.