Pompliano: Huang Renxun Scandal May Mark Bottom for AI Stocks

Anthony Pompliano, CEO of ProCap Financial Inc., said Monday that the controversy surrounding Nvidia CEO Jensen Huang could mark a turning point for battered AI stocks.

Pompliano Takes Contrarian Stance

Pompliano said most investors are likely focused on the "negative consequences" of the scandal linking Huang to an alleged Chinese spy. However, he raised a contrarian possibility.

Pompliano said: "If Jensen Huang's scandal marks the bottom of the AI sell-off, that would objectively be hilarious. Imagine the market gods somehow sacrificing the AI godfather's reputation to exorcise the evil spirits."

Huang has reportedly been linked romantically to a Chinese spy.

If this marks the bottom of the AI sell-off, I wouldn't be surprised.

What doesn't destroy the bull market only makes it stronger.

— Anthony Pompliano 🌪 November 9, 2026

Crypto Speculator Weighs In

Last week, the chipmaker posted its worst weekly performance since the COVID-19 market crash. The iShares Semiconductor ETF, an index tracking semiconductor industry companies, fell 21% for the month.

However, the ETF rebounded strongly by 7% on Monday.

Pompliano said: "I recognize that when everyone is convinced something bad is about to happen, the market typically turns the other way."

Polygon-based Polymarket currently prices the probability of an AI industry downturn before year-end at just 7%, with a slightly higher probability of 23% before June 30, 2027. These probabilities have declined notably over the past 24 hours.

Trump Backs Huang

Despite Nvidia's board planning to establish an independent committee supported by external legal counsel to investigate the matter, Huang's admission continues to send shockwaves.

President Donald Trump said he spoke with Huang and was told the Nvidia CEO was completely unaware that the woman involved, Alice Huang, was a spy.

Meanwhile, a shareholder lawsuit has been filed against Nvidia, alleging the company made materially false and misleading statements regarding its CEO's relationship.

Price action: Nvidia shares rose 1.48% in overnight trading. The stock closed down 4.27% in Monday's regular session at $178.67. Edge stock ratings show NVDA maintaining a weak price trend in the short, medium, and long term.

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