AI Stocks Slide as Investors Question Big Tech’s Trillion-Dollar Spending
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Nvidia volatility prompts expert to urge investors to diversify stock holdings

“Nvidia’s share price will remain volatile for a while before settling down,” says Maria Landeborn, a savings economist at Danske Bank. “We need to see who takes over from Jensen Huang,” she says.

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Nvidia's share price is plummeting following allegations of infidelity involving CEO Jensen Huang and his resignation.

Many Swedes own Nvidia shares or have funds that include them.

If you have global funds and pension funds that invest globally, and you own Nvidia through them, then I don't think you should do anything, says Maria Landeborn.

You still have a good spread of risk. Nvidia is a big company, but it's not everything in a global fund.

For those who are more exposed because they also have a technology fund and perhaps own Nvidia shares directly, it may be time to review their position.

The general advice is that you should not put all your eggs in the same basket. If you have a high exposure to one company, this is a typical example of when things can go wrong.

"Enormous need"

It is unclear how the turbulence will affect other companies in Nvidia's sector.

Maria Landeborn says many AI-related stocks have risen in recent days while Nvidia has fallen amid the scandals.

There is a huge need for data centers, computing capacity, networks and AI chips, and that will not change because an individual company manager has made mistakes or done things that mean he has to leave the company.

She says Nvidia's large customers may be motivated to reduce their dependence on the company.

This could benefit other chip manufacturers.

Nvidia's order books are overflowing, and that will not change because of this. But other companies are already developing their own chips, and no company wants to be at the mercy of a single supplier.

Turbulent times

Until Nvidia appoints a new CEO, its share price will continue to ride a roller coaster.

I think there may continue to be large price movements precisely because he has been such a central figure.

Maria Landeborn points out that Jensen Huang has run Nvidia since the company was founded.

He is synonymous with Nvidia. For many, he is a symbol of the entire AI boom and everything that is happening in artificial intelligence.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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