Nvidia Stock and Won Both Slide, Wiping approximately $3 Billion Off South Korea's National Pension Service Holdings; AI Chip Trio Valued at approximately $131 Billion

South Korea's National Pension Service's stake in Nvidia was worth about 11.78 trillion won (approximately $8.9 billion) as of Nov. 11 local time, according to estimates reported by financial industry sources on Nov. 12. The calculation assumes the fund still holds the 50,834,621 shares it reported to the U.S. Securities and Exchange Commission at the end of June, valued at the New York closing price of $173.73 a share. Against roughly 15.7 trillion won at end-June, the position has fallen 25.3%, or about 3.982 trillion won.

The decline was split almost evenly between share-price weakness, which accounted for about 2.0762 trillion won, and currency effects, which accounted for about 1.9058 trillion won. The won strengthened against the dollar, which reduced the won value of the dollar-denominated holding. The Nov. 11 close was already 6.9% below the Nov. 6 level before the management allegations surfaced.

The immediate trigger was a governance shock. After the regular session closed, The New York Times reported allegations of an extramarital relationship between Huang and Kimberly Powell, a healthcare vice president who reports directly to him, and the stock fell more than 8% at one point in after-hours trading. The facts behind the allegations have not been established. The Wall Street Journal reported that Nvidia's board was preparing to dismiss Huang, after earlier stating it maintained confidence in him.

The pension fund's exposure extends beyond its direct holding. Nvidia is the largest position by value in its overseas equity portfolio, and the fund also holds exchange-traded funds that include Nvidia, such as iShares Core S&P 500, Invesco MSCI USA and T. Rowe Price Growth Stock. Their exact Nvidia exposure is not disclosed in real time, so the total indirect impact is difficult to quantify.

The fund is also exposed to the HBM supply chain. It holds 7.84% of Samsung Electronics and 7.32% of SK Hynix, which supply high bandwidth memory to Nvidia. At Nov. 11 prices, those stakes were worth about 94.4794 trillion won and 68.2902 trillion won, respectively. Including Nvidia, the three holdings total about 174.55 trillion won (approximately $131.4 billion). Some market participants expect the outcome of the U.S. investigation and any management change to affect HBM negotiations, although the prevailing view in South Korea's semiconductor industry is that the allegations alone are unlikely to alter Nvidia's near-term HBM orders. The estimates assume unchanged share counts and do not represent realized losses.