Nvidia Faces Potential $470 Billion Market Cap Wipeout in Two Sessions as Shares Slide; Microsoft Reclaims Second Spot
Nvidia is facing a potential $470 billion loss in market capitalisation over two trading sessions as shares extend their decline amid growing scrutiny of CEO Jensen Huang's reported links to Singapore-based businesswoman Alice Huang, who US officials suspect of having ties to Chinese intelligence.
Nvidia shares closed at $168.80 on November 10, down 5.53% from the previous close of $178.67. The stock has also fallen from $186.64 on November 6.
The latest decline puts Nvidia's market capitalisation at approximately $4.07 trillion.
The controversy centres on allegations surrounding Huang's reported relationship with Alice Huang and questions over the movement of Nvidia chips to Chinese companies.
Nvidia's board has launched an independent investigation, while US lawmakers have sought a closed-door briefing with Huang.
The company has said it has no reason to believe that its trade secrets or US national security have been compromised.
The sell-off has pushed Nvidia below Microsoft in market capitalisation rankings, allowing the software giant to reclaim the position of the world's second-most valuable company.
Investors are also reassessing the sustainability of massive AI infrastructure spending and the potential returns from the sector.
Nvidia is scheduled to announce its next quarterly results on November 17, which will provide fresh insight into AI chip demand and its business outlook.
Key takeaway: Nvidia faces pressure from both the controversy surrounding its CEO and broader concerns over AI valuations, with its November 17 earnings set to be a key test of investor confidence.
Nvidia is facing a potential $470 billion loss in market capitalisation over two trading sessions as shares extend their decline amid growing scrutiny of CEO Jensen Huang's reported links to Singapore-based businesswoman Alice Huang, who US officials suspect of having ties to Chinese intelligence.
Nvidia shares closed at $168.80 on November 10, down 5.53% from the previous close of $178.67. The stock has also fallen from $186.64 on November 6.
The latest decline puts Nvidia's market capitalisation at approximately $4.07 trillion.
The controversy centres on allegations surrounding Huang's reported relationship with Alice Huang and questions over the movement of Nvidia chips to Chinese companies.
Nvidia's board has launched an independent investigation, while US lawmakers have sought a closed-door briefing with Huang.
The company has said it has no reason to believe that its trade secrets or US national security have been compromised.
The sell-off has pushed Nvidia below Microsoft in market capitalisation rankings, allowing the software giant to reclaim the position of the world's second-most valuable company.
Investors are also reassessing the sustainability of massive AI infrastructure spending and the potential returns from the sector.
Nvidia is scheduled to announce its next quarterly results on November 17, which will provide fresh insight into AI chip demand and its business outlook.
Key takeaway: Nvidia faces pressure from both the controversy surrounding its CEO and broader concerns over AI valuations, with its November 17 earnings set to be a key test of investor confidence.