Anthony Pompliano, CEO of ProCap Financial Inc. (NASDAQ:BRR), suggested on Monday that the controversy surrounding NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang could mark a turning point for battered AI stocks.
Pompliano Takes a Contrarian Position
Pompliano said that most investors would likely focus on the “negative fallout” of Huang’s affair with a suspected Chinese spy. He, however, proposed a contrarian possibility.
“It would be objectively hilarious if Jensen’s affair marked the bottom of the AI sell-off,” Pompliano said. “Imagine if the market gods somehow sacrificed the reputation of the AI godfather and they did it in order to purge the bad spirits.”
Crypto Punters Weigh in
Last week, chipmakers recorded their worst session since the COVID-19 market crash. The iShares Semiconductor ETF (NASDAQ:SOXX), an index tracking companies in the semiconductor sector, is down 21% over the month.
However, the ETF staged a sharp 7% rebound on Monday.
“I have learned that when everyone is convinced bad things are going to happen, usually the market turns around and goes the other direction,” Pompliano said.
Polygon (CRYPTO: POL)-based Polymarket currently prices in only a 7% chance that the AI industry experiences a downturn by year-end, and a slightly higher 23% chance by June 30, 2027. The odds have noticeably declined over the past 24 hours.
See Also: Bitcoin Flat As Fed Policy Meet Looms; Ethereum, Dogecoin, XRP Decline: Analyst Flags Support Where They Plan To ‘Load Heavily’ On ETH
Trump Backs Huang
Huang’s admission continues to send shockwaves, even as Nvidia’s board plans to establish an independent committee, supported by external legal counsel, to investigate the matter.
President Donald Trump said that he spoke to Huang and was told that the Nvidia CEO had no idea the woman in question, Alice Huang, was a spy.
Meanwhile, a shareholder lawsuit has been filed against NVIDIA, alleging that the company made materially false and misleading statements in connection with its CEO’s relationship.
Price Action: Nvidia shares are up 1.48% in overnight trading, according to Benzinga Pro. The stock closed 4.27% lower at $178.67 during Monday’s regular trading session.
Benzinga’s Edge Stock Rankings indicate that NVDA maintains a weak price trend over the short, medium, and long terms.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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