Tech firms claw back some losses after midterms rout, eyes on Nvidia

Tech firms claw back some losses after midterms rout, eyes on Nvidia Estelle.Bronkhorst Mon, 11/09/2026 - 10:30

HONG KONG - Tech firms rose Monday to claw back some of last week's painful losses fuelled by AI regulation worries, though traders were keeping a wary eye on a probe into Nvidia boss Jensen Huang amid claims of an affair with a Chinese spy.

Chipmakers and other companies linked to the artificial intelligence boom took a hammering in the days after Tuesday's US midterms saw Democrats sweep both houses of Congress in a rebuke to Donald Trump and his Republican party.

The results suggested voters were angry at the president's Iran war and tariffs, which have sent prices soaring, as well as a sharp kickback against the huge data centre buildout that has taken place across the country in recent years.

That has led to speculation the new Congress will seek to wind in tech firms' construction drive, which could put thousands of jobs at risk.

The uncertainty comes with traders already nervous about when the hundreds of billions of dollars pumped into the sector would actually see a profit.

After taking a lashing on Thursday, Wall Street enjoyed a little stability at the end of last week, and Asia -- which had suffered a hammering itself on Friday -- largely followed suit to start this week.

Tokyo, Seoul and Taipei -- which are heavily weighted with AI-linked tech giants -- led the advances.

The Japanese Nikkei 225 piled on more than three percent thanks to rallies in Kioxia, Tokyo Electron and Advantest, while SK hynix and Samsung piled on around three percent to push the South Korean Kospi sharply higher.

Taiwan's TSMC rocketed nearly six percent to drag the Taiex five percent higher.

There were also healthy gains in Hong Kong and Shanghai, though Sydney, Wellington and Manila edged down.

"Investors will be watching carefully this week to get a sense as to whether these gains are just short-covering, bargain hunting or the beginning of something more sustainable in nature," said Sally Auld at National Australia Bank.

"Fears around AI regulation, the outlook for (capital expenditure) and free cash flow have been the driver of risk reduction in recent weeks and these issues are not likely to be resolved with any conviction in the near term.

"Nonetheless, the valuation of many tech stocks now looks less expensive."

- Nvidia probe -

However, a little more uncertainty was injected into markets with news that Nvidia's board was launching an investigation into whether Huang had been targeted in a foreign espionage plot following his admission that he was unfaithful to his wife.

The New York Times reported last month that US intelligence officials concluded a Chinese executive linked to a Singapore-based data centre company called Megaspeed had been funnelling information to Beijing.

The executive, Alice Huang -- also known as Huang Le, and no relation to 63-year-old Taiwanese-born Jensen -- developed a close relationship with the Nvidia boss, the Times said.

Nvidia is a global leader in producing chips used to train and run AI models and one of the world's most valuable companies, and last year became the first to reach a market capitalisation of $5 trillion.

Jensen Huang is a huge figure in the AI revolution and a close informal adviser to Trump, and the Times said the Nvidia boss's extra-marital relationship could have revealed insights into Trump's thinking around AI.

Technology analyst Dan Ives, at investment bank Yorkville Ives, said the crisis will at the very least spark multiple congressional inquiries and "create an overhang on the stock for a myriad of reasons".

"This will add risk to the stock as he is so important to the Nvidia story and strategy globally," Ives added. "This will also increase major scrutiny regarding selling chips to China, which remains a key battleground issue in DC."

Investors will be keeping tabs this week on the release of fresh US inflation data, after figures Friday showed the economy created far more jobs than expected in October.

The figures will key for the Federal Reserve in determining whether or not to hike interest rates when it meets next in December, with markets saying there is an 80 percent chance of a lift.

• AFP