Nvidia Stock Plummets 13% Amid Jensen Huang Controversy: Mutual Fund Exposure Revealed

Nvidia Corporation's stock has experienced a significant decline of 13.19% over the past five days, primarily driven by the controversy surrounding CEO Jensen Huang. As of November 11, 2026, Nvidia shares closed at $173.73, but overnight trading saw a sharp drop to approximately $161, reflecting a 7.31% decrease. This downturn raises concerns for Indian mutual fund investors who hold shares of the US-based chipmaker, especially as the stock has plummeted 24.23% over the past month and 10.06% over the last year. According to DotMR analysis, Nvidia's board is reportedly considering the future of Huang amid allegations regarding his personal relationships, which have been linked to potential security concerns.

The controversy surrounding Jensen Huang involves allegations of his connections with Alice Huang, who is suspected of ties to Chinese intelligence, and Kimberly Powell, Nvidia's vice president of healthcare. This situation has escalated, prompting Nvidia's board to convene to discuss Huang's position. The implications of this controversy extend beyond corporate governance; they significantly impact the stock's performance and, consequently, the portfolios of mutual funds that hold Nvidia shares.

Five passive mutual funds have substantial exposure to Nvidia through major international indices such as the Nasdaq 100, S&P 500, and NYSE FANG+. These funds follow a passive investment strategy, meaning they track their respective indices and cannot independently adjust their holdings without adhering to index methodologies. For instance, a 1% decline in Nvidia's share price could lead to a 0.13% reduction in the portfolio value of the Mirae Asset S&P 500 Top 50 ETF, which has a 13.08% allocation to Nvidia.

The following table summarizes the exposure of various mutual funds to Nvidia, highlighting their allocation percentages and share counts over the past three months:

Several actively managed mutual funds also hold Nvidia shares, including international equity funds, technology funds, and diversified equity schemes. Unlike passive funds, these actively managed funds allow fund managers to make independent decisions regarding their Nvidia holdings. For example, the ABSL International Equity Fund increased its Nvidia shares from 7,700 in September to 8,600 in October, while the DSP Multi Asset Allocation Fund maintained its holding of 80,200 shares.

A 1% decline in Nvidia's share price could result in an approximate 0.0491% decrease in the portfolio value of the ABSL International Equity Fund, which has a 4.91% allocation to Nvidia. The potential impact on these funds could be substantial, especially if the controversy surrounding Huang continues to escalate.

The market's reaction to the ongoing controversy has been swift and severe. As Nvidia's stock continues to decline, mutual fund investors are left grappling with the potential ramifications on their portfolios. The controversy intensified in late October and November 2026, coinciding with Nvidia's stock price drop, raising questions about the company's leadership and future direction.

Investors are advised to monitor the situation closely, as the outcome of the board's deliberations regarding Huang could significantly influence Nvidia's stock performance in the coming weeks. The uncertainty surrounding the CEO's future may lead to further volatility in the stock price, impacting mutual funds and their investors.

In light of the current situation, mutual fund investors holding Nvidia shares must navigate the uncertainty surrounding the company's leadership and stock performance. The ongoing controversy involving Jensen Huang poses risks not only to Nvidia's market position but also to the portfolios of investors who have significant exposure to the tech giant. As the situation develops, investors should remain vigilant and consider consulting with financial advisors to assess their positions and potential strategies moving forward.