Nvidia Corp (NVDA) shares fell about 6% in pre-market trading Monday after reports emerged that the company's board had launched an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort.

So what happens to the AI ETF trade if the man synonymous with Nvidia's rise faces a leadership crisis?

$540 Billion Riding on Nvidia

According to ETFIQ data, 659 U.S.-listed thematic and core ETFs held Nvidia as of Nov. 6, with aggregate Nvidia holdings worth $540.3 billion across 644 funds with available data.

The figure represents the combined value of Nvidia positions across funds, not unique investor exposure, as multiple ETFs hold the same shares.

With Nvidia down approximately 6% in premarket trading, the estimated combined market value of its $540.3 billion in ETF holdings could decline by roughly $32.4 billion, assuming fund holdings remain unchanged. This is a hypothetical mark-to-market impact, not actual investor losses or ETF outflows.

Which ETFs Have the Most Nvidia Exposure?

A sharp Nvidia selloff could disproportionately affect semiconductor and technology ETFs, even if other holdings remain relatively stable.

• VanEck Semiconductor ETF (SMH) has 20.75% of its portfolio invested in Nvidia, while VanEck Fabless Semiconductor ETF (SMHX) had a 20.04% allocation, based on Nov. 5 holdings.
• Vanguard Information Technology ETF (VGT) had 17.58% exposure, while iShares Semiconductor ETF (SOXX) allocated approximately 8.38% to the chipmaker.
• Invesco QQQ Trust (QQQ) held approximately $34.3 billion in Nvidia shares, representing 7.68% of its portfolio.

Could a Jensen Huang Exit Shake Up AI ETFs?

Prediction markets are pricing in Nvidia leadership uncertainty. Polymarket and Kalshi both put the probability of Huang leaving or being removed at approximately 35%, according to the figures cited in the reports.

For ETF investors, the concern extends beyond a single trading session. Huang has been central to Nvidia's AI strategy and its rise to become a dominant supplier of AI chips.

Any credible threat to his leadership could introduce another source of volatility into a semiconductor sector already facing questions about data-center spending and the sustainability of AI demand.

The bigger risk for ETF investors is how much of their supposedly diversified portfolio not only depends on one stock, but one CEO.