Huang’s Resignation Sends NVIDIA Stock Lower and Puts Fund Concentration in Focus
Key Facts
NVIDIA announced on November 12 that Jensen Huang had resigned as chairman, chief executive and board member, with CFO Colette Kress to serve as interim CEO while the board searches for a permanent successor, Reuters reported, citing the company. The company said the search would consider internal and external candidates. Huang, who owns about 3.61% of its shares and is its fourth-largest shareholder, would also leave the board. The announcement came as the stock faced acute pressure, putting the company’s weight in technology and semiconductor funds directly in investors’ focus. Fund holdings show the scale of their exposure to the stock, but do not by themselves establish that investors have reallocated their money.
NVIDIA shares fell more than 14% in early trading on November 12 before paring losses, Reuters reported. The news agency said the decline weighed on the broader market, while AMD and Broadcom shares each rose about 6%. Analysts attributed the partial rebound to buying on the dip, Reuters reported. NVIDIA shares had closed at $181.6 on November 5, then at $186.64 on November 6, before falling to $178.67 on November 9 and $168.89 on November 10. They closed at $173.73 on November 11, according to EL7 daily data.
NVIDIA represents about 20.57% of the net assets of the VanEck Semiconductor ETF, known by the ticker SMH, according to holdings data published on November 3. Taiwan Semiconductor was the next-largest holding mentioned, at 9.62%. In the Invesco QQQ, NVIDIA accounted for about 7.58% of the portfolio on November 5, according to Invesco. These weights show the stock’s presence in the two funds, which have different concentrations: SMH specializes in semiconductor companies, while QQQ’s portfolio includes major Nasdaq companies. The direct impact of a decline in the stock therefore varies for each fund according to its weight in the assets.
EL7 previously noted in a story dated August 26 that NVIDIA’s results were relevant to 803 exchange-traded funds, citing that story’s headline. That figure refers to that date and is not a current count of funds that own the stock. The holdings weights available before developments on November 12 offer a more recent indication of the company’s share of SMH and QQQ, but refer to November 3 and November 5, respectively. NVIDIA’s board announced on November 8 that it had begun an independent investigation, Reuters reported. Since that announcement, the company has lost about $300 billion in market value, the news agency said.
Huang said in a letter published by NVIDIA that he had failed his wife and apologized to his family, and said he was prepared to cooperate with the board’s investigation. His letter said: "I was unfaithful to my wife. What I did hurt my wife and our children, and there is no excuse for what I did." The board said it saw no reason to believe that national security or NVIDIA secrets had been compromised. It added that a committee of independent directors, assisted by outside legal counsel, would oversee the investigation and examine the available information. The company said the board would provide further updates when appropriate.
NVIDIA scheduled its fiscal 2027 third-quarter results call for November 17 at 2 p.m. Pacific time, or 5 p.m. Eastern time. The fiscal quarter ended on October 25, according to the investor relations announcement. The call is the next public event listed on the company’s calendar following the resignation announcement. The board also said it would provide updates on the investigation when appropriate, without setting another date. The cited fund weights remain tied to holdings data published before developments on November 12.