Following the resignation of Jensen Huang as CEO, Nvidia's shares dropped 4% on Thursday and continued to decline on Friday. This leadership change has prompted investors to reassess their strategies regarding the company, which is pivotal in the artificial intelligence sector.
A CNBC poll of financial advisors showed that out of 30 respondents, 19 are holding their Nvidia positions steady, while four are increasing their stakes. Notably, none reported selling their shares. Advisors like Winnie Sun emphasized that many clients are positioned to hold Nvidia due to its relatively small percentage in diversified portfolios.
The sentiment among advisors leans towards a 'wait-and-see' approach, with many advising clients to focus on the company's fundamentals rather than reacting to short-term news. Factors that could influence future decisions include AI demand, company valuation, and governance. Nvidia is set to report its fiscal third-quarter results soon, which could further impact advisor strategies.
Investors are also reminded to check their exposure to Nvidia through mutual funds and ETFs, as the company's significant market presence means it is often included in many investment portfolios