Nvidia is more than 6% of the S&P 500. If Jensen Huang is ousted, there’s no clear successor — could the chaos crash your portfolio?

The company didn’t respond to Moneywise’s request for comment, but a spokesperson reiterated that the news “will not slow Nvidia,” while the board said they have “no reason to believe” that Nvidia secrets or national security were compromised.

They also, however, have no succession plan for Huang, whose job hangs in the balance and whose ouster, Reuters warned, could lead to “a full blown leadership ⁠crisis.”

Could Nvidia’s leadership woes become a problem for your portfolio?

Escalating concerns over the pace of AI already caused Nvidia’s stock to take a 22% hit last month. It remains the world’s second-most valuable company, at $4.5 trillion, however, as its AI chips are central to the global data center buildout.

Yet given Fidelity’s note that the 10 largest stocks, including Nvidia, “accounted for nearly 40% of the S&P 500 Index” in June, many investors may not realize how tied their portfolio is to the company’s fortunes.

Investigations, of course, still need to be completed — which could include fresh scrutiny from the incoming Democrat-controlled Senate and Congress.

But Gary Black, managing partner with The Future Fund LLC, wrote on X that, while he doubts Huang will remain as Nvidia CEO and has no successor, he doesn’t “see long-term value impairment.” He acknowledged, though, that “many portfolio managers will reduce their Nvidia holdings in the coming weeks as a result of uncertainty” over the situation.

Yorkville Ives tech analyst Dan Ives wrote that the potential for Huang’s removal “will add risk to the stock” given his importance to the company, while analyst Tristan Gerra of Baird told CNBC that the U.S. government could restrict the company’s dealings with China as a result.