Nvidia shares fell nearly 8% after Wednesday’s close following a Wall Street Journal report that its board could oust chief executive Jensen Huang. The stock dropped to about $160 from $173.73 at the close, and the company has lost more than $450 billion in market value since the turmoil began on November 8. Nvidia represents about 6% of the S&P 500’s total market capitalization and 10% of the Nasdaq 100’s, indirectly exposing millions of Americans with index and target-date funds in their 401(k) accounts. A typical American investor is estimated to have 3% to 5% exposure to Nvidia, while the chipmaker accounts for roughly 2.5% of the average public pension fund’s assets. Experts identify the main risk as a spillover to companies that depend on Nvidia’s chips, but they advise retirement savers not to overreact to the governance news and to maintain diversified, risk-managed portfolios over the long term.
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