Jensen Huang Net Worth Plunges as Nvidia Stock Decouples From Nasdaq 100

Jensen Huang net worth fell sharply on Nov. 9 as Nvidia shares extended their recent decline. Forbes estimated the chief executive lost $7.4 billion during early Monday trading.

Nvidia stock closed at $178.67, down 4.27%, despite gains across major U.S. indexes. The decline followed an independent board investigation into reported foreign intelligence activity involving Huang.

Investors also faced uncertainty ahead of Nvidia’s Nov. 17 earnings announcement.

Jensen Huang’s net worth is in a Freefall

Jensen Huang’s net worth has been in a strong downward trend in the past month. Bloomberg data shows that the wealth dropped to $148 billion on Monday, down by over $6.4 billion. 

His wealth has dropped by over $15 billion from the same period last year, and from $200 billion when Nvidia shares surged to a record high. 

Huang is still one of the richest people in the world, thanks to his stake in Nvidia, the second-largest company in the world. He is the 12th-wealthiest person in the world, a trend that has been heading in the wrong direction over the past few days. According to Bloomberg, he owns about 3.5% of the company, which he started in 1993.

Other top billionaires have done well in the past few weeks. Elon Musk’s wealth jumped by $48 billion on Monday to $894 billion, while Jeff Bezos added $6.68 billion to $375 billion. The other richest people in the world include Google’s Larry Page and Sergey Brin, Meta Platforms’ Mark Zuckerberg, and Dell Technologies’ Michael Dell.

Jensen Huang’s Wealth is Falling After Spy Allegations

Huang’s wealth has been falling in the past few weeks as investors have contended with the ongoing fears of an AI bubble. Some popular investors like Ken Griffin and Ray Dalio have all warned that the bubble will burst as interest rates remain elevated.

The wealth’s decline continued after Huang admitted to infidelity. In a letter to its employees, he said that he had cheated on his wife. His partner, Alice Huang, is believed to be a Chinese spy who passed information to the Chinese.

There are also allegations that the company or its partners have been smuggling advanced chips to China, violating US sanctions.

Nvidia’s board is now investigating, with some analysts warning that he might be forced out of the company. In his tenure, the company’s stock has jumped by over 7,000%.

Nvidia Stock in Focus Ahead of Earnings

Nvidia stock dropped sharply on Monday and diverged from the Nasdaq 100 Index, which jumped by over 3%. This is notable since Nvidia is one of the biggest players in the index.

Looking ahead, investors will focus on the company’s earnings report, which will come out next week. These results will provide more information about its business at a time when there are jitters about the AI industry.

Data compiled by Yahoo Finance shows that analysts expect the company’s third-quarter revenue to come in at $108 billion from $57 billion in the same period last year. This growth has been driven by the ongoing AI demand that has led to a surge in data center developments in the US and other countries. 

Nvidia has a long record of doing better than estimates. For example, its last earnings report showed that its second-quarter revenue rose to $104 billion, exceeding the $99 billion expected by analysts. 

Analysts have a bullish outlook on Nvidia shares. MarketBeat data shows that the average estimate among analysts is $317, much higher than the current $178. Mizuho’s Vijay Rakesh sees the stock rising to $250, while Royal Bank of Canada (RBC) and Goldman Sachs have a target of $330 and $300, respectively. Melius Research, Needham, and Yorkville Ives have targets of $315 and $300, respectively.

This article provides financial information, not investment advice. Stock prices fluctuate, and individual wealth estimates vary with market valuations. Readers should conduct independent research and consult qualified financial professionals before making investment decisions.