Recent Nvidia leadership turmoil and post-midterm political shifts have driven trader sentiment on the AI bubble burst market, with implied probabilities rising notably for a 2027 resolution. Jensen Huang’s sudden resignation amid personal scandals and espionage allegations triggered an 8%+ drop in Nvidia shares, pushing the stock over 22% below its October peak while the SOXX semiconductor ETF approached 40% declines from highs. Democratic midterm gains in key states have fueled regulatory fears around data center expansion, power usage, and water rights, compounding weak earnings from Alphabet, Amazon, and Intel that highlighted slowing revenue growth relative to massive capex. Upcoming catalysts include Anthropic’s IPO roadshow targeting a reduced valuation and potential further neocloud funding stress, all amid questions over whether large language model adoption can justify sustained infrastructure spending.