Advisors hold Nvidia after Huang's exit — none are selling, CNBC poll finds
In a CNBC flash poll of top financial advisors, 19 of 30 respondents said they are holding Nvidia steady after Jensen Huang's resignation, 4 are buying more and 7 do not own it — and none said they were selling.
Hold steady — nobody is selling
Shares of Nvidia continued to slide after the market open on Friday, after declining 4% on Thursday following news of co-founder Jensen Huang's resignation as chief executive, amid reports about his personal relationships and national security concerns. To gauge how wealth managers are responding, CNBC polled members of its Financial Advisor 100 and Financial Advisor Council. 30 of the 122 firms and professionals contacted responded to the online, multiple-choice flash poll, conducted between 11 a.m. and 5 p.m. EST on November 12.
Most respondents, 19, said they are holding their Nvidia positions steady. Another 4 said they are increasing their stake, while 7 said they do not own the stock. None said they were selling at the time of the poll. "Most of our clients are in a position to hold; the reason is because it makes up a smaller percentage of an overall diversified portfolio," Winnie Sun, managing director and founding partner of Sun Group Wealth Partners in Irvine, California, said in an interview. Several advisors wrote that they are taking a "wait-and-see" approach before changing their investment strategy.
What would change their minds
Asked what factors could change their approach to Nvidia, 13 respondents cited the outlook for AI demand, 11 pointed to valuation and 10 mentioned company leadership or governance. Some said the decision depends on the client, with 8 citing risk tolerance and 7 mentioning portfolio concentration. 7 said they do not expect to change their approach.
"Don't react to short-term headlines," wrote certified financial planner Peyton Jamison, president of Jamison Private Wealth Management in Alpharetta, Georgia. "The company's valuation is extremely attractive, and the focus should remain on its underlying fundamentals and long-term investment potential." Nvidia is scheduled to report its fiscal third-quarter 2027 results on Tuesday, November 17, after the market close, and advisors said the earnings will help determine their course of action.
- Advisors responding to the CNBC poll30 of 122 contacted
- Holding Nvidia steady19
- Increasing their stake4
- Do not own the stock7
- Citing the AI demand outlook13
- Citing valuation11
- Citing leadership or governance10
- Earnings reportTuesday, November 17
Analysts turn cautious
Wall Street analysts are turning more cautious. William Blair analyst Sebastien Naji downgraded Nvidia's stock to market perform in an early Thursday note, before the official announcement of CEO Jensen Huang's resignation. He expected the development to "be a significant overhang" on the stock. The rupture at Nvidia could slow down the AI buildout, he said, and bring about more intense competition from rivals. "Heavy is the head that wears the crown," he titled his note to clients.
Still, Naji said Nvidia "holds a leadership role in the AI buildout" and that the stock may not have much further to fall from current levels. But with the company under increasing scrutiny, including from the U.S. government, Naji said Nvidia's product execution and investor sentiment could come under pressure. Advisors also noted that Nvidia exposure can come through mutual funds and ETFs, and investors can check their exposure by reviewing the fact sheets for the funds in their 401(k) or brokerage accounts. "Nvidia is a big part of virtually everyone's portfolio whether they take an active or passive index approach," wrote Andy Pratt, a partner at Burney Wealth Management in Reston, Virginia.
