Nvidia's stock plummeted on November 9 as management risks surrounding CEO Jensen Huang came to light, resulting in a loss of approximately $192.1 billion in market capitalization.
On the New York Stock Exchange, Nvidia shares closed at $178.67, down 4.3% from the previous trading day. At one point, the stock had dropped as much as 8.8%. This decline stood in stark contrast to a rebound among major tech stocks on the same day.
As a result, Nvidia's market capitalization fell to about $431 billion, widening the gap with Apple, which is valued at approximately $510 billion, by about $79 billion.
The drop in stock price also caused Huang's net worth to decrease by $7.4 billion, pushing him down two spots from 8th to 10th in Forbes' global billionaire rankings.
This situation arose after Huang acknowledged and apologized for allegations of infidelity the previous day. The woman involved, Alice Huang, is suspected of being a Chinese spy, prompting Nvidia's board to announce an independent investigation into their relationship.
The incident has heightened concerns about Nvidia's 'owner risk.' Analysts suggest that uncertainty surrounding Huang's position as CEO could dampen investor sentiment, particularly given his status as a prominent advocate for AI.
While some believe the current fallout is limited to Nvidia, there are concerns that it could eventually impact the broader AI and semiconductor industries. Joachim Klement, an investment strategist at global investment bank Liberum, told CNBC that if Huang's position becomes unstable, Nvidia may reduce support for other companies in Asia and the U.S., potentially spreading the shock to other semiconductor firms.
* This article has been translated by AI.
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