Key Takeaways
- • The National Pension Service (NPS) held 50,834,621 Nvidia shares as of end-June, per its holdings report to the SEC; at Nov. 11 prices the position is valued at roughly 11.78 trillion won (about $8.82 billion), a decline of 25.3%, or 3.982 trillion won, from end-June.
- • Nvidia closed at $173.73 on the NYSE on Nov. 11, down 6.9% from Nov. 6, implying NPS losses above $656 million on its direct holding, according to the source's calculations.
- • The source links Nvidia's share decline to allegations about CEO Jensen Huang's personal conduct; these claims are unverified in the article, and it reports that the board is reportedly preparing to dismiss Huang.
- • Nvidia is the largest single-stock position in NPS's foreign equity portfolio, and the article says indirect ETF exposure could make total losses substantially larger.
- • NPS holds 7.84% of Samsung Electronics and 7.32% of SK hynix, both suppliers of High Bandwidth Memory to Nvidia, raising potential knock-on risk for Korean semiconductor holdings.
Summary
BusinessKorea reports that South Korea's National Pension Service has absorbed significant mark-to-market losses on its Nvidia position amid a controversy surrounding the company's CEO, Jensen Huang. Citing NPS's stock holding report filed with the U.S. Securities and Exchange Commission, the article states that the fund held 50,834,621 Nvidia shares as of the end of June. Applying Nvidia's Nov. 11 closing price, the position is estimated at 11.78 trillion won, or about $8.82 billion, a reduction of 25.3% from the end-June value. The article assumes no change in NPS's holdings since June.
The article attributes Nvidia's underperformance to the controversy, noting that while most U.S. semiconductor stocks weakened amid broader AI skepticism, Nvidia fell more sharply. Shares closed at $173.73 on Nov. 11, down 6.9% from Nov. 6. The source also reports that Nvidia shares fell by more than 8% at one point in after-hours trading on Nov. 11 after the allegations reportedly extended to Vice President Kimberly Powell. These personal-conduct allegations are presented in the article as reported claims and have not been independently confirmed in the source material. It further states that the board is reportedly preparing to dismiss Huang, which the article says could trigger additional losses if an executive turnover occurs.
Nvidia is NPS's largest equity holding among its foreign stocks. The article notes that indirect exposure through exchange-traded funds could make the fund's total losses materially greater than the direct-holding estimate, though it does not quantify that exposure.
The article also highlights potential spillover to Korean semiconductor companies. NPS holds 7.84% of Samsung Electronics and 7.32% of SK hynix, both of which supply High Bandwidth Memory to Nvidia.
The article attributes Nvidia's underperformance to the controversy, noting that while most U.S. semiconductor stocks weakened amid broader AI skepticism, Nvidia fell more sharply. Shares closed at $173.73 on Nov. 11, down 6.9% from Nov. 6. The source also reports that Nvidia shares fell by more than 8% at one point in after-hours trading on Nov. 11 after the allegations reportedly extended to Vice President Kimberly Powell. These personal-conduct allegations are presented in the article as reported claims and have not been independently confirmed in the source material. It further states that the board is reportedly preparing to dismiss Huang, which the article says could trigger additional losses if an executive turnover occurs.
Nvidia is NPS's largest equity holding among its foreign stocks. The article notes that indirect exposure through exchange-traded funds could make the fund's total losses materially greater than the direct-holding estimate, though it does not quantify that exposure.
The article also highlights potential spillover to Korean semiconductor companies. NPS holds 7.84% of Samsung Electronics and 7.32% of SK hynix, both of which supply High Bandwidth Memory to Nvidia.
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