Nvidia turmoil weighs on PSEi, Asian markets

The Philippine Stock Exchange Index (PSEi) fell 32.65 points, or 0.57 percent, to 5,660.55 on Thursday, while the peso weakened 45 centavos, or 0.71 percent, to P63.70 per US dollar from Wednesday’s P63.25 close, as renewed pressure on the currency and a broader Asian market sell-off weighed on sentiment.

All PSEi sectoral indices ended in negative territory, with Mining and Oil posting the steepest decline at 3.91 percent. Despite the market’s retreat, foreign investors remained net buyers, recording net inflows of P328.57 million.

Among index constituents, San Miguel Corp. was the session’s top gainer, advancing 4.10 percent, while ACEN Corp. was the biggest laggard, plunging 8.05 percent. Market turnover reached P6.71 billion.

Weakness tracked across Asian equities

According to Philstocks Research, the local market tracked weakness across Asian equities, where reports surrounding Nvidia chief executive Jensen Huang weighed on sentiment toward artificial intelligence and semiconductor-related stocks.

Huang is facing scrutiny following reports of an alleged affair with Alice Huang, a Chinese business executivewith no relation to him, as well as allegations that she may have links to Red Chinese intelligence. Other reports have raised questions about Huang’s position at Nvidia, the world’s largest chipmaker, and the company’s succession plans.

The uncertainty has raised concerns about the leadership of one of the AI industry’s most prominent champions. Huang’s long-term strategy has helped turn Nvidia’s growing cash reserves into investments across the AI ecosystem, including cloud-computing providers, suppliers and major AI research laboratories.

Nvidia shares fell 7 percent ahead of the opening of US markets amid reports questioning Huang’s future at the company. Additional reports alleged that he had been involved in another relationship with an unnamed Nvidia executive, further drawing attention to the lack of a clear succession plan should he leave.

Affect broader equity indexes and investment portfolios

As one of the largest companies in the S&P 500 and a major driver of the AI boom, Nvidia’s share-price movements can also affect broader equity indexes and investment portfolios worldwide.

Meanwhile, the peso extended its losses for a second consecutive session, closing at P63.70 per dollar. The Bankers Association of the Philippines website was unavailable, preventing verification of the day’s intraday range and weighted averages.

Pressured peso

The peso has also faced pressure from persistent dollar demand, elevated global oil prices and uncertainty over the US interest-rate outlook.

Higher-than-expected US inflation has reinforced concerns that the Federal Reserve may keep borrowing costs elevated for longer, supporting the dollar and limiting the appeal of emerging-market currencies.