Nvidia CEO Jensen Huang has slipped to the 10th position on Forbes’ list of the world’s richest people after his personal fortune declined by $7.4 billion in a single trading session on Monday. The sharp fall came as Nvidia shares faced heavy selling pressure following reports of an investigation involving Huang and his alleged connections with a Chinese national suspected of gathering information for Beijing.
The decline in Nvidia’s stock price significantly affected Huang’s net worth, pushing him down two places from eighth to tenth on Forbes’ real-time billionaire rankings. The development also brought his wealth below that of Berkshire Hathaway chairman Warren Buffett and Oracle co-founder Larry Ellison.
Jensen Huang’s Net Worth Falls by $7.4 Billion
According to a Forbes report, Huang’s estimated fortune dropped from $162.2 billion to $154.7 billion during the first 30 minutes of Monday’s trading session.
Nvidia shares opened more than 7% lower, briefly reducing Huang’s wealth by approximately $10.3 billion and pushing him outside the world’s top 10 richest individuals.
By 1:30 PM EST, Nvidia shares were trading 5.5% lower after experiencing a decline of as much as 7% during premarket trading.
The market reaction came during the first trading session after Nvidia confirmed that an investigation involving Huang was underway. The fall in the company’s share price also affected its overall market valuation, which had previously stood at around $4.5 trillion.
Nvidia has regularly competed with Apple for the title of the world’s most valuable publicly traded company.
Nvidia Investigates Allegations Involving Jensen Huang
The controversy intensified after reports emerged about Huang’s alleged relationship with Alice Huang, a Chinese citizen suspected by US authorities of collecting information for Beijing.
According to the report, Huang acknowledged having an affair on Sunday. In a statement addressed to Nvidia employees, he expressed regret over his actions and said he supported the company’s investigation.
Nvidia’s board subsequently announced that it had formed a committee comprising independent directors to examine the available information. External legal advisers have also been appointed to assist with the investigation.
However, the company sought to address concerns about potential security risks, stating that it had “no reason to believe that either national security or NVIDIA secrets were compromised.”
Who Is Alice Huang? Allegations of Links With Chinese Intelligence
The controversy follows a report published by The New York Times last month, which cited findings from US intelligence agencies regarding an alleged connection between Jensen Huang and Alice Huang.
According to the newspaper’s report, Alice Huang was allegedly recruited by Beijing’s leading intelligence agency to gather information about Jensen Huang for China’s Ministry of State Security.
The report referred to a memorandum circulated within the Trump administration. However, the exact circumstances surrounding the beginning of their association remain unclear.
The two were reportedly photographed together at a bar in June 2024. The allegations have attracted attention because of Nvidia’s strategic importance in the global semiconductor and artificial intelligence industries.
Donald Trump Had Been Briefed on the Allegations
The New York Times also reported that US intelligence officials had informed President Donald Trump about their findings concerning Alice Huang approximately a year earlier.
Despite receiving the information, Trump reportedly did not take any action at that time.
An Nvidia spokesperson had previously responded to the newspaper’s questions by defending Huang’s interactions with Alice Huang.
The spokesperson stated that “Jensen’s interactions with Ms. Huang are not unusual or unexpected,” explaining that meeting customers and maintaining professional relationships are part of his responsibilities as Nvidia’s chief executive.
The investigation and the subsequent decline in Nvidia shares have brought fresh attention to the company’s leadership and its market valuation. Huang’s position on the global billionaire rankings has also been affected by the latest movement in the stock price.
Disclaimer: This article is based on publicly reported information and is intended solely for general news and informational purposes. Allegations and ongoing investigations mentioned in this report should not be treated as established facts unless officially confirmed. Stock prices, market capitalisation and billionaire rankings can change frequently. This article does not constitute financial or investment advice.