Nvidia Loses More Than $400 Billion in Market Value in Two Days
Nvidia shares fell another 5.5% on November 10, bringing its two-day loss in market value to more than $400 billion. The company is investigating whether CEO Jensen Huang was the target of a foreign intelligence operation, as investors weigh the potential effects on its leadership and reputation.
Shares of U.S. chipmaker Nvidia fell 5.5% on November 10, leaving it with a market value of $4.07 trillion at the close. The company lost more than $400 billion in market value over two days. Its value briefly fell below $4 trillion during the session, allowing Microsoft to temporarily overtake it as the world’s second most valuable company; Nvidia regained that position by the close.
As the shares fell, CEO Jensen Huang’s wealth declined by $8.3 billion on November 10 to $147 billion. According to the figures in the original report, his wealth fell by about $15 billion over two trading sessions. The three main U.S. stock indexes also declined that day: the S&P 500 and Dow Jones Industrial Average each closed down about 0.3%, while the Nasdaq Composite fell 0.7%.
Nvidia announced on November 8 that it was investigating whether Jensen Huang had been the target of a foreign intelligence operation. The investigation followed Huang’s admission that he had an extramarital relationship with businesswoman Alice Huang. She is suspected of links to Chinese intelligence activities; a company she formerly managed has also been accused of buying Nvidia chips and illegally shipping them to China in violation of U.S. export controls. The findings of the investigation into these allegations remain unclear.
Investors are concerned that the events could affect Huang’s ability to lead and Nvidia’s reputation. Chris Weston, head of research at financial services firm Pepperstone, warned that Nvidia shares could fall sharply if Huang resigns. Tesla investor Gary Black also believes the investigation could put pressure on the stock in the short term.
Source: VietVance
