Nvidia shares came under another round of selling pressure in Tuesday’s trade, falling 6.3% to hit a seven-month low of $166.5 apiece, following a 4.3% decline in the previous session.
Investors appeared concerned about the chip giant’s future prospects amid reports surrounding CEO Jensen Huang’s alleged relationship with Chinese businesswoman Alice Huang, who has reportedly been identified as a Chinese intelligence asset.
As the CEO of the company at the heart of the AI boom, Huang’s leadership and future at Nvidia are particularly important to investors. The latest sell-off comes just days before the company is scheduled to report its quarterly earnings on November 17.
The latest stock decline follows reports that Nvidia’s board launched an internal investigation into Huang on Sunday after he reportedly admitted in an internal staff memo that he had been unfaithful to his wife and apologised to employees.
In addition, the FBI is reportedly examining whether the 63-year-old Huang was targeted as part of a foreign intelligence operation.
These allegations came to light after The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who was investigated by US authorities and reportedly identified as a Chinese intelligence asset.
Alice Huang, also known as Huang Le, is unrelated to Jensen Huang. A former television reporter in China, she later became a senior executive at Megaspeed, a Singapore-based data centre company and one of Nvidia’s biggest customers in Southeast Asia.
Jensen Huang loses another $10 billion; slips to 12th on Forbes list
The latest crash in Nvidia shares has dealt a major blow to Jensen Huang’s net worth, which is on track to decline by another $10 billion to $145.6 billion from $154 billion at the previous close, according to Forbes.
This followed a $7.4 billion decline on Monday, pushing him down to 12th place in Forbes’ Real-Time Billionaires ranking, according to the publication’s data.
Jensen Huang co-founded graphics chipmaker Nvidia in 1993 and has served as its CEO and president ever since. He owns more than 3.5% of Nvidia, which he took public in 1999.
Under Huang’s leadership, Nvidia’s GPUs first became dominant in computer gaming and later emerged as a critical technology in artificial intelligence, propelling the company’s market capitalisation past $5 trillion in 2025.
Nvidia faces potential $400 billion market-cap erosion in two sessions
The latest decline in Nvidia shares has also weighed heavily on the company’s market capitalisation. If Tuesday’s losses hold through the close, Nvidia is on track to shed around $400 billion in market value over two sessions. The company lost nearly $200 billion in market capitalisation on Monday.
US President Donald Trump, billionaire entrepreneur Elon Musk, and investor Bill Ackman have come out in support of Huang amid the controversy. Nvidia is likely to face a barrage of questions about the controversy when it reports its quarterly earnings on November 17.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
About The Author
