Salzburger Tageblatt - Korean Investors Surge Into Nvidia Shares Amid CEO Scandal

Korean investors aggressively purchased Nvidia shares last week, seizing on a steep sell-off triggered by revelations of CEO Jensen Huang’s extramarital affairs and subsequent resignation as a buying opportunity, according to data released Sunday.

Nvidia topped the list of net-buying for U.S.-listed stocks among Korean investors from Nov. 9 through Friday, with total purchases reaching $319.75 million, according to SEIBro, a data portal operated by the Korea Securities Depository. This figure represented a 717 percent surge compared to the previous week.

The buying spree marked a sharp reversal from the start of the week, when Korean investors initially sold a net $6.6 million worth of Nvidia shares on Nov. 9 following Huang’s public admission of marital infidelity. However, that selling was short-lived. Investors resumed buying the following day and significantly stepped up purchases on Friday, snapping up $254.85 million worth of Nvidia shares as the stock plunged as much as 14 percent intraday on news of Huang’s resignation.

The appetite for Nvidia extended to domestically listed exchange-traded funds (ETFs). The five Korea-listed ETFs with the highest weightings in Nvidia drew approximately 1 billion won ($746,268) in net purchases from retail investors over the same period, according to data from the Korea Exchange.

Analysts suggest that this buying behavior indicates investors viewed Nvidia’s steep decline as a bargain-hunting opportunity, even as uncertainty surrounding its leadership weighed on the stock. "While the recent scandal involving Jensen Huang has raised uncertainty, we see limited risk of a direct impact on artificial intelligence (AI) demand or supply contracts," said Lee Kyoung-min, an analyst at Daishin Securities.

Lee noted that Nvidia’s earnings report scheduled for next Tuesday could serve as a key turning point for a potential rebound not only in Nvidia shares but also in AI and semiconductor stocks more broadly. This rebound would depend on the company demonstrating strong demand and providing a clear roadmap for next-generation graphics processing units.

Beyond their financial support, some Korean investors have shown personal support for Huang despite the controversy surrounding his departure. Huang has long enjoyed a favorable reputation in Korea, partly due to his repeated praise for Korean chipmakers and his approachable public persona. His widely publicized gathering over fried chicken and beer with Samsung Electronics Chairman Lee Jae-young and Hyundai Motor Group Executive Chair Chung Euisun further charmed the Korean public.

Some Koreans have also signed an online petition titled "Stand With Jensen," calling for Huang’s reinstatement as Nvidia CEO. The petition had garnered about 126,500 signatures as of noon Sunday.

Kim Kyeong-pyo, identifying himself as an Nvidia shareholder, described Huang as a visionary leader and expressed confidence in his direction. "I strongly believe that Nvidia's continued success depends on Jensen Huang's leadership. I sincerely hope he will continue to lead the company and guide Nvidia toward even greater achievements," Kim wrote.

D.Schmid--SbgTB