The Australian funds exposed to Nvidia's DeepSeek selloff
Nvidia’s surge made winners out of local fund managers, but a sharp selloff and China’s AI upstart DeepSeek are forcing investors to rethink the evolving market landscape.
Nvidia’s meteoric rise during the AI boom created unimaginable wealth for its backers, but an overnight selloff has left investors, including major Australian funds like Macquarie, reassessing their positions.
The tech giant’s shares tumbled 17% overnight, erasing USD597 billion ($952 billion) from its market cap — the largest single-day selloff in American corporate history.
Australian fund managers returned to work on Tuesday morning after the long weekend to assess the fallout, calculating their exposure and assessing if and how this changes their investment thesis.
Macquarie had the largest direct exposure among local investors, holding 41.8 million Nvidia shares as of June, according to Bloomberg data compiled by The Australian newspaper. If held today, that position would be worth just under USD5 billion — or USD1 billion less than it was the day before.
