Nvidia shares fall 4.3% as Jensen Huang’s wealth drops $6.4 billion
After Nvidia announced that Jensen Huang would step down as CEO and leave its board, its shares closed 4.3% lower on November 12. Forbes reported that Huang’s wealth fell $6.4 billion that day. Bernstein also cut its price target for Nvidia shares, drawing attention to the company’s leadership succession.
Nvidia shares closed down 4.3% on November 12, after falling as much as 14% during the session. The company’s market capitalization was about $4.01 trillion, having dipped below $3.9 trillion intraday. Nvidia shares have fallen more than 30% since reaching a high in early October.
Nvidia’s share price over the past year. Chart: Google Finance.（VietVance）
Before the share price fell, Nvidia announced that Jensen Huang would step down as CEO and leave its board of directors. Chief Financial Officer Colette Kress is serving as interim CEO. Huang co-founded Nvidia in 1993 and led the company for 33 years, during which it grew from a gaming hardware manufacturer into an AI chip company.
According to Forbes, Huang’s wealth fell $6.4 billion on November 12, the largest decline worldwide that day. His wealth now stands at $144 billion, placing him 13th on the global rich list. Since the extramarital affair scandal emerged, his wealth has fallen by a total of $18 billion, pushing him out of the global top 10.
Bernstein cut its price target for Nvidia shares from $400 to $200 on November 12. Analyst Stacy Rasgon said the scandal involving Huang made it difficult for the board to keep him in the role. He also said it was difficult to assess who could lead the company’s future development with similar vision.
Source: VietVance
