Arabic version: اضطرابات إنفيديا تختبر رهانات الذكاء الاصطناعي مع صعود الأسواق

According to Cnbc, Wall Street faced a major test last week as Nvidia’s leadership shake-up increased uncertainty around the AI trade. The S&P 500 rose 2.5% for the week and the Nasdaq gained 2.3%, with strong advances on Monday and Wednesday outweighing declines during the other sessions.

Nvidia shares fell nearly 13% for the week, including a further 2% decline on Friday. Reports said the company’s board was investigating CEO Jensen Huang’s relationship with a woman suspected of spying for China, followed by reports of affairs with two Nvidia employees. Huang resigned on Thursday, and longtime chief financial officer Colette Kress was named interim CEO. CNBC Investing Club downgraded Nvidia to its hold-equivalent 2 rating on Tuesday, while Jim Cramer said the next test would be the company’s earnings report on Tuesday evening.

Friday’s broader market selling was tied to concerns that the Federal Reserve could raise rates multiple times over coming meetings. October’s producer price index showed its highest annual reading in nearly four years. Although headline PPI was cooler than expected month over month, its year-over-year increase reached 6.5%, following a hot consumer inflation report earlier in the week.

The Investing Club said it planned to exit Intel and use the proceeds to start a position in Advanced Micro Devices once trading restrictions allow. It cited growing confidence in AMD’s data-center chip prospects and said Nvidia’s turmoil could create an opportunity for AMD to gain graphics-processing-unit market share. The club also reduced data-center exposure by trimming Eaton, initiated a position in Constellation Brands, trimmed Cardinal Health, and sold some TJX Companies shares. It used proceeds to buy more Constellation Brands and Kimberly-Clark shares.