Nvidia Stake Increases by Leading Quantitative Trading Firm Jane Street

Regulatory filings released Thursday reveal that Jane Street, a leading quantitative trading firm on Wall Street, significantly increased its stake in Nvidia during the third quarter. This increase was particularly notable given the turmoil surrounding the company at the time, with Jensen Huang's resignation as CEO just over six weeks away.

Nvidia shares have plummeted nearly 13% over the past five days, reaching a 17-month low intraday on Thursday. The exact timing and extent of Jane Street's purchases are not disclosed in the filings, which only provide a snapshot of the firm's holdings as of September 30. The disclosure is part of a regulatory requirement for firms to report their stock positions.

The market maker held approximately 23.8 million Nvidia shares worth around $5.44 billion at quarter end, according to the filing. This represents more than double the number of shares it held in the second quarter, which were valued at about $2.4 billion. Interestingly, Nvidia was Jane Street's second-largest holding behind a widely-traded ETF.

The regulatory filings only provide a glimpse into Jane Street's investment activities and do not reveal any information on potential short positions or recent trades. The firm declined to comment on its actions when approached by Fortune. This lack of transparency leaves investors wondering about the firm's strategies and motivations.

While the filings offer some insight into Jane Street's Nvidia holdings, they also raise questions about the firm's possible trading activities after the reporting period ended. It is theoretically possible that Jane Street traders could have shorted Nvidia shares after September 30 and profited from the subsequent decline in value.

The 13F filings submitted by Jane Street to the SEC reveal more about the company's trading activities beyond its significant stake in Nvidia. Specifically, these documents show that Jane Street also holds a substantial amount of options, including puts and calls, which are valued based on the underlying shares rather than their market value.

These options can create a distorted picture of the firm's exposure, as reported positions may not accurately reflect the actual sums invested. Moreover, when offsetting trades are taken into account, the overall impact of these positions becomes less clear. As a result, a large reported position does not necessarily indicate a significant directional bet.

The recent turmoil at Nvidia has been dominated by news about its former CEO, Jensen Huang. His departure from the company after more than three decades at the helm was announced on Thursday, with Colette Kress taking over as interim CEO in his place.

Huang's exit comes amidst allegations of personal misconduct and potential foreign interference. In a message to employees on Sunday, he acknowledged being "unfaithful" to his wife and apologized for his actions. He also expressed support for an independent investigation into whether he was targeted by a foreign intelligence operation.

Further revelations about Huang's private life have emerged in the days since his departure, including reports of relationships with several Nvidia employees. The New York Times revealed that Huang had an affair with Kimberly Powell, Nvidia's vice president of healthcare, and Reuters reported on an intimate relationship between Huang and another Nvidia employee.

Jane Street's impressive trading revenue of over $40 billion in 2026 has far surpassed its previous total for all of 2025, which stood at $39.6 billion. This remarkable achievement is all the more notable given that it comfortably outpaced even the nation's largest banks. The sheer scale of Jane Street's trading success has been a major talking point in financial circles.

However, beneath the surface, there have been signs of trouble brewing. A significant $15 billion hit taken by Jane Street was partly attributed to its exposure to Situational Awareness, an AI-focused hedge fund started by Leopold Aschenbrenner, a former OpenAI researcher. This fund's decision to sell off its equities portfolio to Citadel after margin calls triggered by the market downturn left Jane Street with a rough year, although it remained profitable overall.

Despite these challenges, Jane Street has managed to stay on track, with its investment remaining flat for the year despite the drawdown. However, as of now, the company has chosen not to confirm or deny reports about its situation, leaving many questions unanswered.