Amid Jensen Huang‘s confession that he had an extramarital affair with a woman accused of being a Chinese spy, the Nvidia CEO has resigned from the $5 trillion semiconductor giant. The stock price, which drove 15% of the S&P 500’s growth last year, is now down over 27% over the months. The worst fallout to come is not merely financial. Rather, what elevates this otherwise heinous sex scandal into a national security catastrophe is how it was enabled by none other than Commerce Secretary Howard Lutnick.
In May, Secretary of State Marco Rubio sent President Donald Trump and top Cabinet members a classified memorandum detailing the relationship between the Huangs and the intelligence indicating that Alice Huang was a Chinese spy. The White House directed the Commerce Department to put Alice Huang’s Megaspeed on the entity list of companies that pose national security concerns. Lutnick refused this request in May; he refused a second attempted crackdown order from Trump in August; and on Nov. 5, Lutnick reportedly stonewalled Trump again. And evidently, this wasn’t because Lutnick knew too little. Rather, the Commerce Department spent months last year conducting an investigation into Megaspeed and specifically whether it was illicitly smuggling Nvidia chips into China, only for Lutnick’s direct underling, Jeff Kessler, to invite Nvidia to reach out to Commerce about the case, bringing the department’s inquiry to an effective end.
I am sure it is just a coincidence that Cantor Fitzgerald, the financial services firm that Lutnick led for 35 years before passing it off to his 20-something-year-old sons Brandon and Kyle, has a $362.3 million stake in Nvidia, which makes up 7% of Cantor’s entire portfolio.
Rewind to the beginning of this year, and AMD CEO Lisa Su, who happens to be Jensen Huang’s cousin, applies to Commerce for licenses to export its own next-generation MI325X chips to China, just as Nvidia successfully did with its H200 chips (while Commerce shut down the investigation into Jensen Huang’s relationship with the reported Chinese spy). In January, Commerce announces a relaxation of its licensing rules governing MI325X chips. In February, Lutnick grants AMD some export licenses for the chips. In March, Su hosts Lutnick at an industry meeting. But I am positive it’s a mere coincidence that Cantor Fitzgerald more than doubled the number of AMD shares it owned in the first half of 2026, increasing its reported investment value by over 500%.
And I’m sure it’s also a coincidence that Cantor has a $322.5 million stake in Intel, a stake which it increased by nearly 2,000% when daddy just so happened to announce that the government was taking a 10% stake in the firm, and I am super-duper positive it is a coincidence that Cantor increased its stake in Rigetti Computing by 14% the same quarter that Commerce announced it would be investing $100 million in equity in the company.
More than anything, in the bottom of my heart, I know for a fact that it was total and complete kismet that Cantor Fitzgerald took out a net $2.7 billion short position on U.S. Treasurys in April 2025, right when daddy initiated “Liberation Day” and told the world that Trump would make free trade deals “when and only if these countries can change everything about themselves, which I doubt they will,” prompting the single worst 30-year Treasury sell-off since 1982. And I am absolutely positive that it was a little coinkydink that this short position was nearly twice as large as any other Treasury short it had ever taken prior to April 2025.
A screenshot of Cantor Fitzgerald’s FOCUS filing. (Cantor Fitzgerald)
LUTNICK EMERGES AS NEXT TO GO IN TRUMP WHITE HOUSE
And I would swear on my life that when, in 2025, Cantor Fitzgerald planned to purchase American importers’ rights for future tariff refunds for just 20 to 30 cents on the dollar, they were betting that they were likely to lose money because were super-duper certain that the Supreme Court would uphold the tariffs that dad helped author.
On an unrelated note, 90% of voters told the NBC News exit poll that corruption was a crucial or major issue to how they voted in a midterm election that decimated the Republican Party. But that too, I’m sure, is just a coincidence.
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[ H/T Washington Examiner ]
