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Nvidia shares came under another round of selling pressure in Tuesday's trade, falling 6.3% to hit a seven-month low of $166.5 apiece, following a 4.3% decline in the previous session.
Investors appeared concerned about the chip giant's future prospects amid reports surrounding CEO Jensen Huang's alleged relationship with Chinese businesswoman Alice Huang, who has reportedly been identified as a Chinese intelligence asset.
As the CEO of the company at the heart of the AI boom, Huang's leadership and future at Nvidia are particularly important to investors. The latest sell-off comes just days before the company is scheduled to report its quarterly earnings on November 17.
The latest stock decline follows reports that Nvidia's board launched an internal investigation into Huang on Sunday after he reportedly admitted in an internal staff memo that he had been unfaithful to his wife and apologised to employees.
In addition, the FBI is reportedly examining whether the 63-year-old Huang was targeted as part of a foreign intelligence operation.
These allegations came to light after The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who was investigated by US authorities and reportedly identified as a Chinese intelligence asset.
Alice Huang, also known as Huang Le, is unrelated to Jensen Huang. A former television reporter in China, she later became a senior executive at Megaspeed, a Singapore-based data centre company and one of Nvidia's biggest customers in Southeast Asia.
The latest crash in Nvidia shares has dealt a major blow to Jensen Huang's net worth, which is on track to decline by another $10 billion to $145.6 billion from $154 billion at the previous close, according to Forbes.
This followed a $7.4 billion decline on Monday, pushing him down to 12th place in Forbes' Real-Time Billionaires ranking, according to the publication's data.
Jensen Huang co-founded graphics chipmaker Nvidia in 1993 and has served as its CEO and president ever since. He owns more than 3.5% of Nvidia, which he took public in 1999.
Under Huang's leadership, Nvidia's GPUs first became dominant in computer gaming and later emerged as a critical technology in artificial intelligence, propelling the company's market capitalisation past $5 trillion in 2025.
The latest decline in Nvidia shares has also weighed heavily on the company's market capitalisation. If Tuesday's losses hold through the close, Nvidia is on track to shed around $400 billion in market value over two sessions. The company lost nearly $200 billion in market capitalisation on Monday.
US President Donald Trump, billionaire entrepreneur Elon Musk, and investor Bill Ackman have come out in support of Huang amid the controversy. Nvidia is likely to face a barrage of questions about the controversy when it reports its quarterly earnings on November 17.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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