Business · Markets · 4 hrs ago
Nvidia's slide could affect retirement funds that hold index funds
Nvidia shares fell sharply this week after co-founder Jensen Huang admitted to marital infidelity and resigned as the company's CEO, president and board member.
The company’s board has opened an independent investigation into reports that Huang was targeted by a foreign intelligence effort; the US attorney general said no conclusion had been reached on whether a woman linked to the reports was a spy.
Nvidia makes up about 6% of the S&P 500, and many retirement plans offer funds that track broad stock indexes.
That means some 401(k) savers may hold Nvidia indirectly through an index fund, even if they never bought its shares.
Nvidia's value fell by more than $550 billion from November 6, while its stock slide weighed on technology shares; the S&P 500 still rose 2.9% through Thursday, and was estimated to have risen 3.8% without Nvidia.
The episode highlights the risk of relying heavily on one company, and advisers cited in the coverage point to diversification as a way to limit that risk.
Nvidia’s sharp share-price decline could affect retirement savers who hold index funds, even if they do not own Nvidia shares directly.
Nvidia makes up about 6% of the S&P 500, and about 97% of retirement plans offer index funds, according to cited research.
The company’s value fell by more than $550 billion, or about 13%, in the week described by CBS News.
Former CEO Jensen Huang’s resignation followed an admission of marital infidelity and reports about a suspected Chinese spy.
- Who
- Retirement savers with index funds that hold Nvidia shares could be affected. Nvidia and former CEO Jensen Huang are at the center of the story.
- What
- Nvidia’s share-price decline could reduce the value of retirement funds with exposure to the company. Huang resigned from his roles at Nvidia.
- When
- The reports were published on November 13, 2026. Nvidia shares fell during the week, and Huang resigned on Thursday.
- Where
- The potential impact is on retirement accounts, including 401(k) plans. Nvidia is a component of the S&P 500 and other indexes.
- Why
- Nvidia’s large weight in major indexes means funds tracking those indexes hold exposure to its shares. The decline followed turmoil surrounding Huang and his resignation.
This story does not have two clearly opposing sides.
Nvidia shares closed at $186.64, according to Fox Business.
Huang admitted in an email to employees that he had been unfaithful to his wife.
Nvidia shares started falling amid revelations about Huang’s relationship with a woman suspected of being a Chinese spy.
Nvidia announced Huang had resigned as president, CEO and board member.
Nvidia shares were trading around $161 during the market session, according to Fox Business.
- Nvidia share of S&P 500
- About 6%
- Retirement plans offering index funds
- About 97%
- Nvidia value decline
- More than $550 billion since Nov. 6
- Nvidia decline over one week
- About 13%
- Huang’s Nvidia shares
- Approximately 811.5 million
- Huang’s reported decline in holdings’ value
- More than $20 billion
2 sources
What people are saying
They are amazing wealth creators for shareholders
spread your risk broadly enough that no single company's troubles can derail your long-term plan.
My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry