EPF Has Billions Invested In NVIDIA. Should Malaysians Be Worried About Their Savings?

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Employees Provident Fund (EPF) members have reason to pay attention to the controversy surrounding Nvidia Corporation, one of the world's biggest technology companies

The American chipmaker has been plunged into a leadership crisis after its co-founder and chief executive officer (CEO), Jensen Huang, resigned on 12 November, following revelations about his alleged extramarital affairs with three women.

Huang initially acknowledged being unfaithful to his wife in a letter to Nvidia employees on 8 November, writing: "I was unfaithful to my wife. My actions hurt her and our children."

His admission followed multiple reports by The New York Times about his relationship with Alice Huang, a Singapore-based businesswoman reportedly associated with Megaspeed International, a cloud computing company that has attracted scrutiny over allegations involving the movement of advanced Nvidia chips to China.

US intelligence agencies reportedly suspect Alice, identified as Huang Le in Singapore corporate filings, of having links to Chinese espionage, although China has denied the accusations, calling them a "smear" campaign, according to The Guardian.

However, further revelations emerged over the following days, with The New York Times identifying another woman as Kimberly Powell, an Nvidia executive, and Reuters later reporting a third alleged relationship with another company employee.

Huang's departure came amid the growing controversy and an independent investigation by Nvidia's board into possible foreign intelligence involvement.

But the controversy has a more direct Malaysian connection due to EPF's substantial investment in Nvidia

Although EPF's investment in Nvidia is substantial in absolute terms, it represents only a small portion of the fund's overall assets.

How much of EPF's money is invested in Nvidia?

According to its US Securities and Exchange Commission (SEC) Form 13F filing for the second quarter of 2026, EPF held 6,848,392 shares in Nvidia worth approximately USD1.37 billion (RM5.62 billion) as of 30 June.

This represents approximately 7.86% of its disclosed US stock portfolio, making Nvidia its second-largest holding after Microsoft. However, these figures should be viewed in the context of EPF's overall investment portfolio.

As of the end of June this year, EPF had RM1.54 trillion in total investment assets, of which 39% was invested overseas, reported The Edge.

EPF's money is spread across thousands of investments in different markets and asset classes, including shares, bonds, real estate, and infrastructure. This means Nvidia is just one part of EPF's diversified investment portfolio, not where most of its money is invested.

EPF's other major US holdings include:

More importantly, the SEC filing is a snapshot of EPF's disclosed US-listed shareholdings from more than three months ago, rather than a real-time record of its investments.

What happens to EPF's investment if Nvidia shares crash?

A decline in Nvidia's share price would reduce the market value of EPF's holdings in the company.

For perspective, based on EPF's USD1.37 billion position, these are the hypothetical reductions in its investment value if Nvidia shares declined by different amounts, assuming the fund retained the same number of shares.

For example, a 40% decline would reduce the value of EPF's Nvidia holdings by approximately RM2.25 billion, more than half of its current reported value of RM5.62 billion, using an illustrative exchange rate of RM4.10 to USD1.

Although substantial in absolute terms, this reduction would represent approximately 0.15% of EPF's RM1.54 trillion investment portfolio. This illustrates why a sharp decline in one company's share price does not necessarily translate into a major loss for the retirement fund as a whole.

However, it does not mean EPF is completely insulated from stock market volatility.

A sustained decline in Nvidia's share price could affect the fund's investment performance, particularly if other major technology and AI-related investments also experience losses.

But could Nvidia's troubles affect EPF dividends?

Not necessarily.

EPF's annual dividends are determined by the performance of its overall investment portfolio rather than the movement of individual stocks. The fund invests members' contributions across several asset classes, including equities, government securities, corporate bonds, sukuk, real estate, and infrastructure. For the second quarter of 2026, EPF reported RM29.77 billion in investment income.

Equities generated RM20.94 billion, accounting for 70% of that income, while fixed-income investments contributed RM6.91 billion, or 23%. The remaining income came from real estate, infrastructure, and money market instruments.

EPF also clarified in its first-half 2026 investment report that unrealised mark-to-market gains and losses on securities, arising mainly from foreign exchange movements, are not distributable as dividends.

Therefore, a fall in Nvidia's share price does not necessarily mean EPF has sold its shares at a loss or immediately suffered a realised financial loss. However, if the fund eventually sells an investment at a loss or experiences weaker returns across its wider portfolio, that could affect its overall investment income.

Beyond EPF's investment, the controversy has brought attention to Malaysia after a company associated with the allegations was found to have a local affiliate operating at Malaysian data centres

The companies involved are Singapore-based Megaspeed International Pte Ltd and its Malaysian affiliate, Speedmatrix Sdn Bhd. Both have also attracted scrutiny over allegations that advanced Nvidia AI chips purchased through their operations could have been diverted to China in breach of US export restrictions.

According to The New York Times' reporting in October 2025, Megaspeed and its affiliates purchased nearly USD2 billion (approximately RM8.4 billion at the time) worth of Nvidia chips.

Ministry of Investment, Trade, and Industry (MITI) is now working with the Royal Malaysian Customs Department to determine whether any chips imported by the companies were subsequently re-exported and whether the transactions complied with Malaysian law.

In a statement earlier today, 13 November, MITI clarified that it had never granted regulatory clearance to Megaspeed or Speedmatrix, reported The Edge.

The ministry also explained that Speedmatrix was a tenant at Malaysian data centres and that previous verification visits to the facilities were routine monitoring exercises rather than an endorsement of the company.

"Any suggestion otherwise is inaccurate," the ministry said, adding that Speedmatrix brought its own servers and AI chips into Malaysia for its operations.

While MITI clarified that importing AI chips into Malaysia does not currently require a permit or licence, there are specific regulatory requirements for exporting, transshipping, or transporting certain high-performance AI chips of US origin through Malaysia.

Since July last year, Malaysia has required a Strategic Trade Permit for the export, transhipment, and transit of high-performance AI chips of US origin under Section 12 of the Strategic Trade Act 2010.

So, could the fallout affect the country's data centre industry?

Malaysia has been positioning itself as a regional destination for data centres and AI infrastructure, attracting billions of ringgit in investments from international technology companies.

According to the Malaysian Investment Development Authority (MIDA), the country recorded RM385.7 billion in data centre-related investments between 2021 and the first half of 2026.

The government has also approved 27 data centre projects under its Data Centre Task Force (DCTF), involving an estimated RM225.97 billion in investments as of July 2026. Of these projects, 16 are located in Johor, 10 in Selangor, and one in Negeri Sembilan.

The Digital Ministry said the projects are expected to create 4,053 jobs, including 3,523 high-skilled positions in areas such as electrical and mechanical engineering, networking, cybersecurity, and data centre operations. Malaysians are expected to fill 89.21% of those high-skilled positions.

This explains why the government has a significant interest in ensuring Malaysia remains a trusted destination for international technology companies.

If Malaysian data centres are found to have been used to circumvent export restrictions, it could invite greater scrutiny from foreign governments, especially the US, and technology suppliers.

Companies investing in Malaysia may also face additional compliance requirements when importing, storing, and transferring advanced computing hardware.

The Nvidia controversy has also affected Bursa Malaysia, particularly companies associated with the country's data centre industry

On 12 November, YTL Power International Bhd shares fell more than 8% to RM4.40, wiping out more than RM3 billion in market capitalisation. Its parent company, YTL Corporation Bhd, also fell 4.6% to RM1.89, while NationGate Holdings Bhd declined 4.81% to RM1.78.

YTL Power is particularly relevant because it has an established partnership with Nvidia to develop AI infrastructure at its Green Data Center Park in Kulai, Johor. The project uses Nvidia's advanced GPUs to provide AI computing capabilities.

NationGate, meanwhile, is a contract manufacturer for Nvidia.

Other Malaysian companies associated with data centre developments, including Mah Sing Group, Sime Darby Property, Gamuda, and Sunway Construction, were also caught up in the sell-off.

The market reaction reflects investor concerns about Nvidia's leadership crisis and the potential implications for the wider AI infrastructure industry.

However, a fall in share prices does not necessarily mean these companies' underlying businesses have deteriorated.

YTL Power, for instance, has other business interests, including power generation and utilities, while property developers and construction companies have projects beyond data centres.

So, should Malaysians be worried?

For ordinary EPF members, there is no immediate reason to panic over their retirement savings simply because Nvidia is facing a leadership crisis.

Even a substantial decline in Nvidia's share price would represent a relatively small proportion of EPF's overall investment assets, based on its latest disclosed holdings.

The fund's diversified investment portfolio also means its annual dividend is not determined by the performance of one technology company.

However, the wider implications for Malaysia deserve attention.

The investigation into Megaspeed and Speedmatrix raises questions about how advanced AI chips enter, move through, and leave Malaysia, particularly as the country expands its data centre industry.

The government will need to demonstrate that Malaysian facilities are not being used to circumvent international export restrictions while ensuring legitimate technology investments can continue.

Ultimately, the bigger issue is not whether Nvidia's troubles will wipe out Malaysians' EPF savings. It is whether Malaysia can protect its position as a trusted destination for the global technology industry while ensuring the investments pouring into its data centre sector translate into genuine economic opportunities for Malaysians.