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NVIDIA CEO Jensen Huang lost USD 7.4 billion from his net worth within the first 30 minutes of trading on Monday, November 9, after the chipmaker’s shares fell sharply amid reports of an investigation into his relationship with a business executive suspected by US intelligence of gathering information for China.
The decline pushed Huang down two positions, from eighth to tenth, on Forbes’ real-time billionaire rankings. His estimated fortune fell from USD 162.2 billion to USD 154.7 billion, according to Forbes. He briefly dropped out of the world’s 10 richest people after NVIDIA shares opened more than 7% lower.
NVIDIA shares were down 5.5% at 1:30 PM EST on Monday, after falling as much as 7% in premarket trading. The decline marked the first trading session after the company confirmed an investigation involving its chief executive.
The stock movement also affected NVIDIA’s market valuation. Its market capitalization fell from USD 4.5 trillion at Friday’s close, putting the company further behind Apple in the race to become the world’s most valuable publicly traded company.
Huang’s ranking also slipped below Berkshire Hathaway chairman Warren Buffett and Oracle co-founder Larry Ellison.
The controversy follows a report by The New York Times last month that US intelligence agencies had identified a close relationship between Huang and Alice Huang, a Chinese citizen suspected by Washington of collecting information for Beijing.
According to the report, China’s intelligence agency allegedly recruited Alice Huang to gather information for its Ministry of State Security. The allegations have raised questions because NVIDIA’s advanced AI chips are strategically important to the United States.
Huang acknowledged having an affair in a statement to employees on Sunday. He apologized for his actions and said he supported the company’s investigation.
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NVIDIA’s board has appointed a committee of independent directors, supported by external legal counsel, to examine the available information.
However, the company said it had "no reason to believe that either national security or NVIDIA secrets were compromised."
Alice Huang has also been linked to Singapore-based Megaspeed, a cloud computing and AI infrastructure provider that has business ties with NVIDIA. US authorities have reportedly examined the company’s possible role in China’s access to advanced NVIDIA chips.
The controversy comes at a sensitive time for NVIDIA, which remains central to the global artificial intelligence industry. Its chips power data centers and AI infrastructure used by major technology companies.
The investigation could bring additional scrutiny to the company’s business relationships and technology exports. For investors, the immediate focus will remain on the board’s findings, the company’s response, and whether the controversy has a lasting impact on NVIDIA’s share price.