Nvidia CEO Resigns Amid Scandal; Stock Plummets After High-Profile Break

Nvidia's stock took a brutal dive early Thursday after CEO Jensen Huang stepped down. The chip giant, which he built into a tech behemoth over 33 years, announced his resignation amid explosive reports of personal infidelity.

Reports surfaced that Huang had an intimate relationship with a woman U.S. intelligence officials believe is a spy for China, along with an extramarital affair with Kimberly Powell, Nvidia’s vice president of healthcare.

In a stunning move, the company's shares plummeted more than 10% before stabilizing slightly and dropping more than 5% as of 2:50 p.m. EST.

Despite the turbulence, Philip Chao, a financial planner, told investors not to worry about their exposure, calling the situation a 'contemporary, sensational case of risk.'

The math backs up the expert opinion: if Nvidia were only 8.4% of the holdings in the Vanguard S&P 500 ETF (VOO) as of September 30, a 10% drop in Nvidia would only cause the fund to decline by 0.84%.

Similarly, the Invesco QQQ Trust (QQQ), which held 6.8% of Nvidia stock, would see a 0.68% loss on the same 10% plunge, according to an analysis by Experiential Wealth.