Nvidia shares: Domestic passive funds take hit as stock slides 27% in just over a month

At least a dozen mutual fund schemes, mainly passive, have taken a hit amid the battering of Nvidia, which has lost $1.58 trillion in market value over the past 26 sessions amid controversy surrounding CEO Jensen Huang's affairs, Bloomberg data compiled by Business Today suggests. These include Motilal Oswal NASDAQ 100 ETF, Mirae Asset NYSE FANG+ ETF, Motilal Oswal S&P 500 Index, ICICI Pru NASDAQ 100 Index, DSP Multi Asset Allocation, Mirae Asset S&P 500 Top 50 ETF and Axis Large & Mid Cap Fund.

Nvidia is the second-largest holding of Motilal Oswal NASDAQ 100 ETF, an exchange traded fund tracking the underlying index, accounting for 8.02 per cent of its assets under management (AUM). The ETF held Rs 899 crore worth of Nvidia shares as on date, compared with Rs 1,065 crore on October 31, Bloomberg data showed.

Nvidia was the fourth-largest holding of Mirae Asset NYSE FANG+ ETF, accounting for 10.38 per cent of its AUM. Its holding was valued at Rs 342 crore, compared with Rs 458 crore on the last reported date, Bloomberg data showed.

Motilal Oswal S&P 500 Index held Rs 286 crore worth of Nvidia shares, compared with Rs 339 crore on the last reported date. Nvidia accounted for 7.56 per cent of the fund's AUM.

ICICI Pru NASDAQ 100 Index held Rs 234 crore worth Nvidia shares, DSP Multi Asset Allocation has Rs 131 crore exposure, Mirae Asset S&P 500 Top 50 ETF own 113 crore worth Nvidia shares. Axis Large & Mid Cap Fund own 86.95 crore worth Nvidia shares at present.

The Santa Clara-headquartered chipmaker giant is facing steep target cuts of up to 60 per cent from brokerages such as Bernstein, Argus Research and Baird, amid reports that the chipmaker is preparing to oust Huang.

From a market capitalisation of $5.76 trillion on October 6, Nvidia has lost $1.58 trillion in value, taking its valuation to $4.18 trillion as of November 12. This, in fact, does not include the 8.61 per cent plunge the stock witnessed in post-market trade after a Bloomberg report suggested that Nvidia was in the process of naming a temporary chief and searching for a permanent one, as one of Huang's affairs was linked to a woman suspected of being a Chinese spy.

Bernstein became the second brokerage in as many days to downgrade Nvidia, saying it had "had enough". The brokerage cut its target on Nvidia to $200 from $400 earlier. Baird had earlier downgraded the stock to 'Neutral' from 'Outperform' on Wednesday, slashing its target to $200 from $500.