Nvidia CEO Jensen Huang suffered a massive financial setback after his estimated wealth declined by $7.4 billion within just 30 minutes of stock market trading on Monday. The sudden drop pushed him from eighth to tenth position on Forbes’ real-time list of the world’s richest people.
According to Forbes, Huang’s net worth fell from approximately $162.2 billion to $154.7 billion during the first half-hour of trading. The sharp decline came as shares of Nvidia, one of the world’s leading artificial intelligence (AI) chip manufacturers, witnessed heavy selling pressure.The fall in Nvidia’s share price followed reports surrounding Huang’s alleged relationship with Alice Huang, a former executive associated with Singapore-based AI computing company Megaspeed International. US intelligence agencies reportedly suspected her of having links to Chinese intelligence activities. However, these allegations have not been independently established.
The controversy intensified after Nvidia’s board announced an independent investigation into the matter. Huang reportedly acknowledged an extramarital relationship in a message to employees and expressed support for the investigation.Nvidia’s shares reportedly opened more than 7 per cent lower on Monday. The company’s market capitalisation also witnessed a significant decline, falling from around $4.5 trillion to approximately $4.24 trillion.
The decline in his wealth pushed Huang below Berkshire Hathaway’s Warren Buffett and Oracle co-founder Larry Ellison in Forbes’ billionaire rankings.
The development highlights how market movements and corporate controversies can have an immediate impact on the wealth of major business leaders, particularly those whose fortunes are closely linked to company shares.
