Nvidia CEO Jensen Huang lost $7.4 billion as the company's shares fell amid an affair controversy and a board investigation. Here's what happened.
Nvidia CEO Jensen Huang saw his personal fortune take a $7.4 billion hit on Monday as shares of the chipmaker fell amid controversy surrounding his reported relationship with a woman suspected by US intelligence of gathering information for China.
Huang's net worth dropped from $162.2 billion to $154.7 billion during the trading session, pushing him down from eighth to 10th place on Forbes' real-time billionaire rankings. He slipped below Berkshire Hathaway chairman Warren Buffett and Oracle co-founder Larry Ellison, according to Forbes.
Also Read
Nvidia shares fell as much as 7 per cent in premarket trading before closing lower. The stock was down 5.5 per cent by 1.30 pm EST on Monday. The company's market capitalisation also declined from $4.5 trillion at Friday's close to around $4.24 trillion.
Huang's fortune recovered slightly on Tuesday, reaching $155.4 billion, although he remained at the 10th position on the Forbes list.
Why did Nvidia shares fall?
The decline came after Huang acknowledged an affair in a message to Nvidia employees on Sunday and apologised to his wife, children and colleagues. He also said he supported an investigation into the matter.
Nvidia's board has appointed a committee of independent directors, supported by external legal counsel, to examine the available information. The company said it had no reason to believe that national security or Nvidia's confidential information had been compromised.
The controversy follows a report by The New York Times that US intelligence agencies had assessed that Huang had a close relationship with Alice Huang, a Chinese citizen suspected of collecting information for Beijing. The newspaper reported that US intelligence had briefed President Donald Trump on its findings around a year ago.
An Nvidia spokesperson had earlier told the newspaper that Huang's interactions with Alice Huang were not unusual, describing meetings with customers as part of his role.
Alice Huang has described herself as the chief executive of Singapore-based Megaspeed, an AI computing services provider that partners with Nvidia. However, the allegations surrounding her have not been established publicly.
What does this mean for Nvidia?
The controversy comes at a crucial time for Nvidia, which has been a major beneficiary of the global artificial intelligence boom. Investors will be watching the outcome of the board's investigation and whether the developments affect confidence in the company's leadership.
Nvidia is scheduled to announce its quarterly earnings next Tuesday. The results will offer investors an opportunity to assess the performance of its business amid the growing scrutiny surrounding its chief executive.
Published: 10 Nov 2026, 05:24 pm IST
ABOUT THE AUTHOR
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.