Nvidia's $1T drop: what it means for your portfolio
Nvidia shares fell 4.3% Thursday after CEO Jensen Huang resigned amid an alleged spying scandal, wiping out over $1 trillion in market value since the company peaked a year ago. The plunge impacts regular investors through index funds. Huang stepped down as CEO and board member following reports of affairs, including with an alleged Chinese spy. CFO Colette Kress was named interim CEO, helping shares recover from a 14% intraday drop. Nvidia comprises about 6% of the S&P 500 and 9% of the Nasdaq. Many Canadians hold Nvidia through ETFs and mutual funds, exposing them to tech volatility. Analysts say diversified portfolios should weather the storm, though investors are urged to review their holdings for overconcentration in AI-related stocks.