{"id":74596,"date":"2026-11-12T15:38:15","date_gmt":"2026-11-12T19:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-scandal-deepens-as-second-affair-surfaces-us-deficit-hits-404-billion\/74596\/"},"modified":"2026-11-12T15:38:15","modified_gmt":"2026-11-12T19:38:15","slug":"nvidia-scandal-deepens-as-second-affair-surfaces-us-deficit-hits-404-billion","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-scandal-deepens-as-second-affair-surfaces-us-deficit-hits-404-billion\/74596\/","title":{"rendered":"Nvidia Scandal Deepens as Second Affair Surfaces; US Deficit Hits $404 Billion"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) former CEO Jensen Huang<\/strong> reportedly had an intimate relationship with a <strong>second employee<\/strong>, adding to the scandal that led to his resignation.<\/li>\n<li><strong>US Federal Budget Deficit<\/strong> for October 2026 reached <strong>$404.1 billion<\/strong>, significantly exceeding analyst estimates of <strong>$317.5 billion<\/strong>.<\/li>\n<li><strong>Super Micro Computer (<a href=\"\/stock\/SMCI\">SMCI<\/a>)<\/strong> issued a statement denying a relationship with <strong>Megaspeed<\/strong>, while confirming cooperation with US, Taiwanese, and Singaporean authorities.<\/li>\n<li><strong>Democratic Senator Jack Reed<\/strong> called for a Congressional assessment on whether <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> is <strong>&quot;too big to fail&quot;<\/strong> and its potential systemic risk to the banking system.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> and <strong>Nasdaq (<a href=\"\/stock\/NDAQ\">NDAQ<\/a>)<\/strong> both reported infrastructure and technical issues, with <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> redistributing global traffic to manage elevated loads.<\/li>\n<\/ul>\n<h2>Nvidia Scandal and Leadership Transition<\/h2>\n<p>The fallout from the resignation of <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) founder Jensen Huang intensified Thursday following reports from <em>Reuters<\/em> sources that he had an intimate relationship with a <strong>second, unnamed employee<\/strong>. This follows previous revelations of an affair with <strong>Kimberly Powell<\/strong>, the company\u2019s VP of Health Care, and a controversial relationship with <strong>Alice Huang<\/strong>, an executive at Singapore-based <strong>Megaspeed<\/strong> whom US intelligence suspects of being a foreign asset.<\/p>\n<p>Amid the turmoil, the <strong>newly appointed <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> CEO<\/strong> has reportedly scheduled a company-wide meeting for next Wednesday to address the transition. Meanwhile, <strong>Senator Jack Reed (D-RI)<\/strong> issued a statement urging Congress to evaluate if the chipmaker has become <strong>systemically important<\/strong> to the global banking system, suggesting the firm may now be &quot;too big to fail&quot; given its central role in AI-driven financial infrastructure.<\/p>\n<h2>Super Micro Denies Megaspeed Ties Amid Global Probes<\/h2>\n<p>Super Micro Computer (<a href=\"\/stock\/SMCI\">SMCI<\/a>) has moved to distance itself from the ongoing <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> investigation, specifically denying any relationship with <strong>Megaspeed<\/strong>. Despite this denial, the company confirmed it has been <strong>voluntarily providing information<\/strong> and fully cooperating with authorities in the <strong>US, Taiwan, and Singapore<\/strong>.<\/p>\n<p>The cooperation follows reports that the <strong>Department of Justice (DOJ)<\/strong> is investigating whether products from Super Micro were illicitly diverted to China. The company emphasized its responsiveness to inquiries as regulators scrutinize the supply chains of high-end AI servers equipped with restricted semiconductor technology.<\/p>\n<h2>US Fiscal Deficit Swells in October<\/h2>\n<p>The US Treasury Department reported a massive <strong>$404.1 billion budget deficit<\/strong> for October 2026, the first month of the new fiscal year. This figure represents a sharp increase from the <strong>$284.3 billion<\/strong> deficit recorded in October 2025 and far surpassed the consensus forecast of <strong>$317.5 billion<\/strong>.<\/p>\n<p>Total outlays for the month hit <strong>$773 billion<\/strong>, while receipts fell to <strong>$369 billion<\/strong> compared to $404 billion a year prior. Analysts noted that <strong>net customs receipts<\/strong> dropped to <strong>$19.22 billion<\/strong>, a significant decline from the <strong>$31.35 billion<\/strong> collected in October 2025, reflecting shifting trade dynamics and lower revenue collection.<\/p>\n<h2>Technical Disruptions and Geopolitical Tensions<\/h2>\n<p>In the technology sector, <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) confirmed it has begun <strong>redistributing connection traffic<\/strong> across its worldwide infrastructure to mitigate &quot;elevated load&quot; issues impacting services. Simultaneously, <strong>Nasdaq Trading Services<\/strong> announced an investigation into issues affecting its <strong>email system<\/strong>, though no immediate impact on trading operations was reported.<\/p>\n<p>On the geopolitical front, Iran&#39;s state news agency <strong>IRNA<\/strong> reported that the city of <strong>Sirik<\/strong> in the southern Hormozgan province was hit by <strong>&quot;enemy fire.&quot;<\/strong> The attack was described as <strong>military in nature<\/strong>, though officials provided no immediate details on casualties or the specific origin of the strike, further heightening tensions in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) former CEO Jensen Huang reportedly had an intimate relationship with a second employee, adding to the 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