Jensen Huang Affair Could Have a Bigger Impact on America's AI Race Than Nvidia, Says Gene Munster: 'Both Democrats and …

The spy controversy surrounding Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang is highlighting the growing geopolitical stakes of artificial intelligence.

On Monday, Deepwater Asset Management’s managing partner Gene Munster argued that the U.S. must continue expanding its data center infrastructure to maintain its AI leadership.

Munster Says Jensen Huang Allegations Highlight AI’s Geopolitical Stakes

“The fact that China targeted Jensen underscores the geopolitical significance of AI leadership,” Munster wrote on X.

He added that the issue could transcend party lines, arguing that “both Democrats and Republicans will need to build lots of data centers.”

The fact that China targeted Jensen underscores the geopolitical significance of AI leadership.

That means both Democrats and Republicans will need to build lots of data centers. $NVDA
— Gene Munster (@munster_gene) November 9, 2026

His comments come as Nvidia faces scrutiny over reports involving Huang and a suspected Chinese spy. Nvidia’s board is investigating reports that Huang was targeted by a foreign intelligence effort. Separately, Huang apologized to his family and employees after acknowledging that he had been unfaithful to his wife.

Read Also: Bill Ackman Says Jensen Huang ‘Has Done a Lot of Good for the World’: Hopes Damage From Affair Is ‘Minimal’

Jensen Huang’s Wealth Takes a Hit As Nvidia Shares Slide

The controversy has coincided with a sharp decline in Nvidia shares. The shares were down 4.27% during the regular hours on Monday, according to Benzinga Pro.

Huang’s estimated fortune fell by approximately $9.7 billion on Monday to $152.5 billion, according to Forbes, marking the largest dollar decline among billionaires that day.

The Nvidia co-founder, who owns nearly 4% of the company, briefly dropped out of the world’s 10 richest people before returning to the ranking.

US Data Center Construction Hits Record

U.S. data center construction spending surged 90% year over year in September to a record annualized rate of $96.5 billion, according to The Kobeissi Letter.

The market commentator said spending had increased more than 60% annually for four consecutive months and nearly quadrupled since the beginning of 2024.

BREAKING: US data center construction spending jumped +90% YoY in September, to a record annualized rate of $96.5 billion.

This also marks the largest YoY increase in 10 years.

This figure is now risen more than +60% YoY for 4 consecutive months.

Since the start of 2024, data… pic.twitter.com/xJeXbPUFuO
— The Kobeissi Letter (@KobeissiLetter) November 9, 2026

Jim Cramer Flags ‘Brutal’ Data Center Stock Charts

Meanwhile, CNBC’s Jim Cramer highlighted the disconnect between the AI infrastructure boom and the performance of related stocks.

“The charts on some of these data center companies are brutal. They could all go up another ten percent and still be in no man’s land,” Cramer wrote on X.

the charts on some of these data center companies are brutal. They could all go up another ten percent and still be in no man's land
— Jim Cramer (@jimcramer) November 9, 2026

IREN Ltd. (NASDAQ:IREN) fell 1.06% on Monday and is down 39.16% over the past month.

CoreWeave Inc. (NASDAQ:CRWV) gained 5.56%, but it is still down 40.33% over the same period.

Applied Digital Corp. (NASDAQ:APLD) rose 7.52% on Monday, although it was still down 29.39% over the month.

Last week, AI data center stocks faced selling pressure after Democrats, who have supported calls for a pause on new data center projects, scored major midterm victories, including in key technology hubs such as Texas.

OpenAI, Meta Push Ahead With AI Data Center Investments

On Friday, OpenAI CFO Sarah Friar said the company will continue investing heavily in AI infrastructure despite growing public opposition to data centers.

Meanwhile, a newly elected governor who campaigned on restricting data center development has moved to preserve Meta Platforms, Inc.’s (NASDAQ:META) investment in the state, according to Dina Powell McCormick.

President Donald Trump also urged senators to pass legislation aimed at accelerating energy development, lowering costs and shielding electricity customers from data center-related expenses.

According to Benzinga Edge, Nvidia ranks in the 24th percentile for Momentum and the 98th percentile for Growth.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Read Also: Jensen Huang’s Nvidia Future Suddenly Looks Uncertain As Gary Black Warns Board Could Show Him the Door: ‘Could Put Short-Term Pressure On the Stock’

Photo courtesy: Shutterstock

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