Nvidia CEO Jensen Huang resigns after tech giant rocked by second affair allegation – follow live

Katie Williams
Live reporter

I asked Russ Mould, investment director at AJ Bell, what the latest Nvidia turmoil means for people’s money.

He says “lots of people probably have this stuff in their pension, whether they know it or not”.

Worth about $4.2tn, Nvidia is one of the “Magnificent Seven” tech stocks, along with Google’s parent company Alphabet, Meta, Microsoft, Apple, Amazon and Tesla.

Mould says these seven stocks collectively make up more than 30% of America’s S&P 500, which tracks the share prices of the largest publicly traded US companies.

And US equities make up a significant portion of many people’s pensions.

But Matt Britzman, senior equity analyst at Hargreaves Lansdown, tells me that even though Nvidia is an “important” part of the US market, a diversified portfolio is built to “ride out the inevitable ups and downs of individual companies”.

Nvidia’s share price has fallen compared with five days ago, while the Nasdaq Composite, which is heavily weighted towards tech companies, has risen by more than 4%, external.

Britzman also expects some “short-term turbulence” for Nvidia, but says “demand for AI isn’t going anywhere”.