You might not think it, but the Nvidia scandal is already affecting you. Here’s how

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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…

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.

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…

The…

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