Troubles continue to mount for Nvidia CEO Jensen Huang, who is facing allegations of being involved with a suspected Chinese spy. Since the news broke, Nvidia shares have taken a plunge, down nearly 14% in the last five trading sessions. As a result, Huang’s net worth has also taken a hit while he is being accused of defrauding shareholders.
According to Forbes, Huang’s net worth has taken a hit of nearly $7 billion in a single day. As of November 11, his net worth remains at $155 billion, down $6.8 billion following the massive selloff in Nvidia shares. This 4.19% slide in his net worth caused him to drop two spots to the 10th richest person in the world, slipping below Warren Buffett and Larry Ellison.
The company’s market capitalisation, which stood at $4.5 trillion at Friday’s close, fell to $4.24 trillion by Monday afternoon. Huang also briefly lost his status as one of the world’s top ten richest people when the stock opened down over 7%, causing him to lose $10.3 billion.
Nvidia Scandal
Nvidia’s shares fell after reports emerged about an alleged relationship involving Huang and a suspected Chinese intelligence asset. Huang has also admitted to being unfaithful to his wife in a message to his employees but did not share further details. He also said he would cooperate with the independent investigation announced by Nvidia.
The news has raised concerns among investors about possible risks to the company. On Monday, Nvidia’s shares closed down 4.3%, wiping out around $190 billion from the company’s market value.
The situation also led to a proposed class-action lawsuit against Nvidia and Huang. The lawsuit accuses them of misleading shareholders by hiding information about Huang’s alleged ties to Chinese businesswoman Alice Huang. It was filed just minutes after the US stock market closed.
Huang co-founded Nvidia and has led the company to become the world’s most valuable chipmaker. The controversy now puts a spotlight on what happens to the future of the company and how much role Huang will continue to play in its development.
Also Read: Culper Research flagged Nvidia CEO Huang’s alleged Chinese spy connection 6 months before scandal