Nvidia Stock Plunge Hits Israeli Institutional Investors Hard
Translated & summarized from Globes by baba
Nvidia's stock has plummeted 32.5% from its peak due to reports concerning CEO Jensen Huang, impacting global markets. Israeli institutional investors, including Menora Mivtachim and Harel Investments, face significant paper losses totaling hundreds of millions of dollars. Despite the downturn, some firms like Harel and Phoenix increased their Nvidia holdings in the third quarter.
The story in 5 lines · by baba
- Nvidia stock has fallen 32.5% from its peak amid reports about CEO Jensen Huang.
- Israeli institutional investors face paper losses exceeding $660 million from Nvidia holdings.
- Menora Mivtachim holds the largest direct stake among Israeli firms, with significant paper losses.
- Harel and Phoenix increased their Nvidia holdings in the third quarter despite the stock drop.
- Global giants BlackRock and Vanguard face estimated paper losses of $140 billion each.
Nvidia's stock has experienced a significant decline, falling 32.5% from its all-time high reached just five weeks ago. The drop follows reports of alleged affairs involving its founder and CEO, Jensen Huang, including one with a woman described as a potential Chinese spy. These revelations have led the Nvidia board to consider Huang's removal, causing the stock to fall an additional 7% in early Thursday trading.
The volatility in Nvidia's stock, a major component of Wall Street indices like the S&P 500, Nasdaq, and the Philadelphia Semiconductor Index (SOX), directly impacts the broader market trend. Israeli institutional investors are significantly exposed to Nvidia, both through index funds and direct holdings.
Leading Israeli insurance and investment firms, including Menora Mivtachim, Harel Investments, Migdal Insurance, and Phoenix, have seen substantial paper losses. Menora, identified as holding the largest direct stake, has an estimated paper loss exceeding $660 million from Nvidia's peak. Harel, Migdal, and Phoenix also report significant paper losses of $388 million, $196 million, and $209 million respectively, based on their holdings at the end of the third quarter. Altshuler Shaham also reported a paper loss of $152 million.
Some firms, like Harel and Phoenix, increased their Nvidia holdings during the third quarter, despite the ongoing stock decline. Harel now holds nearly 5 million shares valued at approximately $808 million, while Phoenix holds about 2.7 million shares worth around $435 million. Migdal holds about 2.5 million shares, and Altshuler Shaham's holdings are valued at about $316 million.
Globally, major institutional investors like BlackRock and Vanguard, which held between 7.3% and 7.4% of Nvidia's stock as of March, are estimated to have incurred paper losses of around $140 billion each from the stock's peak.
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