Rs 654,000,000,000 blow: How NVIDIA chief Jensen Huang lost billions of dollars in a day?

Nvidia CEO Jensen Huang’s fortune took a hit on Monday, falling by $7.4 billion and pushing him down to the 10th spot on Forbes’ list of the world’s richest people. The decline came as Nvidia shares slid amid scrutiny over his alleged links to a Chinese spy.

Nvidia shares closed 4.3% lower on Monday, wiping out around $190 billion from the company’s market capitalisation, Reuters reported. The lawsuit related to the allegations was filed five minutes after the US stock market closed.

Read more: Nvidia CEO Jensen Huang's secret affair: Why did US intelligence suspect Alice Huang of spying for China?



The legal proceedings, along with an ongoing board investigation, could put Nvidia’s disclosure practices under further scrutiny. The company may also face closer attention over its technology exports as questions continue to emerge about the alleged relationship and its potential implications.

Jensen Huang net worth

Jensen Huang’s net worth fell from $162.2 billion to $154.7 billion within the first half-hour of trading, pushing him down two places from eighth to 10th in Forbes’ real-time billionaire rankings, according to the publication. The decline wiped nearly $7 billion (around Rs 65,400 crore) off his fortune.

Nvidia announced a probe into the matter on Sunday. Its shares closed down 4.3% on Monday, reducing Nvidia's market capitalization by approximately $190 billion. The lawsuit was filed five minutes after the US stock market closed.

It is common for shareholders to sue companies after unexpected share price declines.

According to the Bloomberg Billionaires Index, Huang is now ranked 12th, with his net worth falling to $148 billion after a decline of $6.48 billion (around Rs 60,594 crore).

Also Read: Nvidia opens probe into CEO Jensen Huang over affair with woman suspected of spying for China

Jensen Huang net worth: How has NVIDIA chief earned his fortune?

Most of Jensen Huang’s wealth comes from his stake in Nvidia, the Santa Clara, California-based maker of computer processors and artificial intelligence products. Huang co-founded the company with Chris Malachowsky and Curtis Priem, according to Nvidia’s website, Bloomberg reported.

Huang holds about 3.4% of Nvidia’s shares, both directly and through family trusts, reported Bloomberg. This estimate does not include unvested restricted stock units.

Huang has been president and chief executive of Nvidia since its founding in 1993. The company held its initial public offering in 1999.

By the end of 2016, Huang and his company had delivered the first supercomputer to OpenAI. The launch of ChatGPT in 2022 was followed massive growth in the artificial intelligence sector. Nvidia’s ability to provide hardware components to AI companies led to strong growth in its own share price, Bloomberg reported.

FBI to look into Jensen Huang case

President Donald Trump said Monday that Nvidia CEO Jensen Huang should not worry about the FBI looking into his affair with a woman alleged to be a Chinese government agent.

“I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape,” Trump said at a White House briefing.

The sudden emergence of Huang's infidelity has rocked the political class and America's tech sector, creating new concerns about whether China has been able to access the cutting-edge chips designed by Nvidia that are powering the development of artificial intelligence.

Trump suggested the extraordinary step of directly involving himself in a counterintelligence investigation, a sign of his friendly relationship with Huang and the possible geopolitical stakes.

“I did speak to him today just to see if he’s feeling all right, how you’re doing," Trump said. "He said he had absolutely no idea that the person in question was a spy.”

Trump is slated to meet next week with Chinese leader Xi Jinping in Shenzhen, China, at the Asia-Pacific Economic Cooperation summit, but he was noncommittal about bringing up the situation with Xi.