ALEX BRUMMER: Why I fear the Nvidia boss’s affair is a ‘black swan’ event that could bring down the global financial system

The opinion article argues that reports of Nvidia chief executive Jensen Huang’s alleged affair have triggered a sharp fall in the company’s shares and could expose wider risks in markets inflated by enthusiasm for artificial intelligence. It presents the episode as a possible catalyst for a broader sell-off, while warning that the financial system could be vulnerable if confidence in major technology firms collapses.

The article says Nvidia’s market value fell from $5.7 trillion at its 6 October peak to $4.2 trillion, and claims its shares dropped about 16 per cent in five days, including a reported £200 billion loss in a few hours. It cites the Nasdaq’s near tripling in three years and estimates that the “Magnificent Seven” technology firms have taken on $3 trillion in unsecured debt. It compares the potential consequences with the 2008 financial crisis; these predictions and comparisons are the author’s argument, not established outcomes.