British pension holders, savers and investors are highly likely to be exposed to the growing crisis at Nvidia after its chief executive resigned following revelations he had extramarital affairs, including one with an alleged Chinese spy.
Jensen Huang’s resignation from the AI chip manufacturer – one of the world’s most valuable companies – sent Nvidia’s stock tumbling, shedding nearly $500 billion in market capitalisation since the close of US trading last week.
The crisis is worrying, not just for bankers or Silicon Valley elites, but for savers, investors, and anyone with a pension, who may be more exposed to fluctuations in Nvidia’s value than they realise – even if they haven’t bought individual shares in the company.
How the crisis could affect you
There is a good chance that holders of a stocks and shares ISA are exposed to Nvidia through investments in the US stock market.
Retail investors, investing in exchange-traded funds – which hold a range of stocks – through platforms such as Trading 212, could also be similarly exposed.
Popular funds include S&P 500 trackers, which track the 500 biggest US companies’ stock market performance. Nvidia was worth around seven per cent of the S&P 500 US stock market index before the stock slide triggered by Huang’s exit. This means that for every £100 invested in the US stock market, roughly £7 was invested in Nvidia. The company was worth around eight per cent of the more tech-heavy Nasdaq 100 index.
Many pensions will be affected too, with workplace pensions highly likely to be invested in tracker funds, such as the FTSE 100. Some 45 per cent of the total holdings of UK defined contribution pension schemes were held in the US stock market, according to April 2025 analysis from investment bank Panmure Liberum. However, since then, some diversification among pension funds has occurred over fears of the market’s growing concentration in a small number of tech stocks and the risk of an AI bubble.
Savers around 30 years from retirement on defined contribution schemes are particularly vulnerable to Nvidia exposure, as they typically have around 70 to 80 per cent of their assets invested in global equities with the US stock market dominating within that. The “Magnificent Seven” stocks (Alphabet, Amazon, Apple, Tesla, Meta Platforms, Microsoft and Nvidia), of which Nvidia was the biggest, takes up a major chunk of the stock market’s value. The performance of these companies plays a major role in the success of an ISA.
The crisis has also drawn attention to how reliant UK savers’ finances are on US tech stocks in general, which could be headed for decline if a perfect storm of the Nvidia scandal, AI and data centre backlash during the US midterms, and the ongoing fallout of the Iran war threaten to burst the AI bubble.
Why rock star CEO Huang’s resignation is so huge
Huang, like Apple’s Steve Jobs, SpaceX’s Elon Musk, Amazon’s Jeff Bezos and Meta’s Mark Zuckerberg before him, has become something of a celebrity chief executive in recent years.
Nvidia, like several big tech firms, is highly leader-centric in its running, with the CEO’s choices and personal life having an outsized influence on the valuation. As Huang oversaw the company, it grew from an obscure firm making graphics processing units for video game consoles to what was the world’s most valuable company, with its chips central to the AI supply chain. An employee of Nvidia that spoke to the FT described the company as “a cult” devoted to Huang, and said: “Jensen is a god, and that’s how he’s worshipped.”
Huang also built a close personal relationship with the US President and was seemingly able to extract policy concessions. In October 2025, he donated $25 million to fund Donald Trump’s White House ballroom project. Following that, Trump granted Nvidia the ability to sell its second most advanced chips to China in exchange for a profit-sharing agreement with the US government.
But the revelations of his affair with Alice Huang, a former executive at Singapore-based tech firm Megaspeed, who is alleged by the US government to be a Chinese spy, cast questions on his judgement.
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