Daijiworld Media Network - San Jose
San Jose, Nov 10: Nvidia CEO and co-founder Jensen Huang’s personal fortune plunged by $7.4 billion within the first 30 minutes of trading on Wall Street on Monday, November 9, as shares of the artificial intelligence chipmaker came under pressure amid controversy surrounding his personal life and reports of a possible foreign intelligence operation.
According to Forbes, Huang’s estimated net worth fell to $154.7 billion during early trading, pushing him from eighth to 10th position on the publication’s real-time billionaires ranking. He slipped below Berkshire Hathaway chairman Warren Buffett and Oracle co-founder Larry Ellison.
Forbes’ subsequent November 9 estimate placed Huang’s fortune at $155.4 billion, with him retaining the 10th position globally.
The sharp decline reflects Huang’s substantial exposure to Nvidia shares. He owns more than 3.5 per cent of the company, making him its largest individual shareholder. Consequently, movements in the chipmaker’s share price can translate into multibillion-dollar changes in his estimated wealth.
The latest setback followed a broader technology-sector sell-off. According to the Bloomberg Billionaires Index, Huang’s wealth stood at approximately $150.9 billion on November 6, following a decline of $15.1 billion during a period of weakness in technology stocks. The Forbes and Bloomberg figures differ because the trackers use different valuation methods, asset assumptions and reference times.
Nvidia shares fell 4.3 per cent on November 9, wiping approximately $190 billion off the company’s market capitalisation. The stock had dropped as much as 7 per cent in premarket trading, while Forbes reported a decline of around 5 per cent by 11 am Eastern Time.
The sell-off came after Nvidia announced an independent investigation into reports that Huang may have been targeted by a foreign intelligence operation.
The controversy centres on reports concerning Huang’s relationship with Alice Huang, a former executive at Singapore-based Megaspeed International, a customer of Nvidia. According to Reuters, US authorities had investigated allegations that Alice Huang was a Chinese intelligence asset. Megaspeed has also faced scrutiny over suspicions involving access to advanced Nvidia chips subject to US export restrictions.
The intelligence allegations remain separate from Huang’s admission of infidelity and have not been established as findings of Nvidia’s investigation.
In a message to employees on November 8, Huang acknowledged being unfaithful to his wife, Lori Huang, apologised to his family and accepted responsibility for his actions.
Nvidia’s board subsequently announced that independent directors, assisted by outside legal counsel, would investigate the reported foreign intelligence effort. The company said it had no reason to believe that US national security or Nvidia’s confidential information had been compromised. The board also expressed confidence in Huang and his leadership team.
In another development, Nvidia and Huang have been named in a proposed shareholder class-action lawsuit filed in federal court in San Jose, California. According to Reuters, the lawsuit alleges that the company and its chief executive failed to disclose information concerning Huang’s reported relationship and potential national security risks associated with it.
The shareholders contend that the alleged lack of disclosure could have misled investors about risks affecting Nvidia’s business and reputation. Filed after Monday’s market close, the lawsuit seeks unspecified damages. The allegations have not been proven in court.
Huang’s admission has also renewed speculation about the possible financial implications of a divorce. He married Lori Huang in 1985, years before Nvidia was established in 1993. The couple met while studying at Oregon State University and have two children. There has been no public announcement of a separation or divorce filing.
Given the scale of Huang’s estimated fortune, a hypothetical division of marital assets could involve tens of billions of dollars. At Forbes’ early-trading valuation of $154.7 billion, an illustrative 50:50 split would amount to approximately $77.35 billion each.
However, such a calculation does not necessarily reflect how a divorce settlement would be determined. California’s community property laws generally provide for an equal division of marital property, but not automatically half of an individual's entire estimated net worth. Separate property, ownership structures, trusts and valid marital agreements could affect the outcome.
For Nvidia investors, attention remains focused on the independent investigation, the shareholder lawsuit and the company's ability to maintain confidence in its leadership.
Huang has led Nvidia since co-founding it in 1993 and has overseen its transformation from a graphics-chip manufacturer into a global leader in artificial intelligence computing.
Although the board has publicly backed him, the investigation adds uncertainty for a company already facing questions over AI valuations, export restrictions and geopolitical tensions. Monday’s steep decline also highlighted the volatility of fortunes closely tied to publicly traded companies, with Huang’s wealth remaining particularly sensitive to movements in Nvidia’s share price.