One of Britain’s largest Nvidia Corp investors, FTSE 100 constituent Scottish Mortgage Investment Trust PLC (LSE:SMT), remained unaffected by the sharp downturn in the chipmaking giant’s share price on Thursday.
Nvidia stock fell more than 6%, stripping as much as $200 billion from its market valuation after the Santa Clara-based supplier of processing grunt to the artificial intelligence sector failed to bowl Wall Street over in the second quarter.
Despite revenues soaring to a new record, the market bid Nvidia shares lower for failing to match the Street’s insatiably high expectations for the AI darling.
Prominent big tech investor Scottish Mortgage often suffers a knock-on effect when any of the US Magnificent Seven stocks take a tumble, but its shares were trading 0.8% higher at the last count.
Nvidia is Scottish Mortgage’s largest holding, comprising 6.8% of the Baillie Gifford-run fund’s holdings.
Scottish Mortgage also has large stakes in Tesla Inc (NASDAQ:TSLA), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB), alongside Dutch semiconductor equipment supplier ASML and privately owned Space Exploration Technologies (SpaceX).
Manchester & London Investment Trust plc (LSE:MNL), another Nvidia bull with a 32.1% weighting to the chipmaker, was also buoyant on Thursday, adding 1.65% to its share price.
Polar Capital Holdings PLC (AIM:POLR), which is 11.06% weighted to Nvidia, added 0.8%.
Despite volatility on Nvidia’s share price, the wider Nasdaq 100 Index, which predominantly comprises US megacap tech stocks, is expected to rise by 0.2% when US markets open, suggesting broader confidence in the sector.