Nvidia CEO and co-founder Jensen Huang's fortune shrank by nearly $10 billion after the chipmaker’s share price fell amid a wider selloff of major tech stocks on Tuesday.
Jensen Huang's net worth fell by nearly $10 billion on Tuesday.
According to our estimates, Huang’s net worth was $94.6 billion as of early Wednesday, after falling by $9.8 billion on Tuesday.
The nearly $10 billion wipeout dropped the Nvidia CEO from 14th to 16th place on Forbes’ Real-Time Billionaires list, below Michael Dell, the founder and CEO of computer maker Dell, and Walmart heir Jim Walton.
On Tuesday, Nvidia’s share price fell by 9.5% ending the day at $108—as the company’s market cap was routed by a record $279 billion.
Nvidia’s stock fell a further 2.4% in after-hours trading following a Bloomberg report that the company had been subpoenaed by the DOJ as part of an antitrust probe.
In early trading on Wednesday, the stock was down to $105.80 almost 2% below Tuesday’s closing price.
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$90.6 billion. That is how much Huang’s fortune has risen since 2019, when Forbes estimated he was the 546th-richest person in the world. At the start of 2023, Huang’s net worth was $21.1 billion.
According to Bloomberg, Nvidia received subpoenas from the Justice Department as the agency expanded its probe into potential antitrust violations by the chipmaker. The subpoenas, which oblige Nvidia to respond, come after the agency sent out questionnaires on the matter. The DOJ’s investigation is reportedly focused on concerns about Nvidia allegedly making it harder for its customers to switch to chips made by other companies. The agency has not yet filed a formal complaint against Nvidia, but the subpoenas bring it one step closer.
Earlier this week, Politico reported that the DOJ was investigating Nvidia’s acquisition of Israeli start-up Run:ai, amid concerns about major AI technologies being cornered by a small group of dominant tech companies. Nvidia announced the acquisition in April this year, without disclosing a price tag.
Nvidia’s shares are down more than 14% since the company published its second-quarter earnings report last week. Nvidia reported a record $30 billion in sales for its second fiscal quarter ending in July—beating out analyst expectations of $28.6 billion. For its third fiscal quarter, Nvidia has forecast revenue of $32.5 billion, plus or minus 2%, which is slightly higher than average analyst estimates. The projection, however, was short of some of the loftier forecasts made by analysts, causing the company’s stock to fall. Reports of Nvidia’s next flagship AI chip, Blackwell, facing potential production delays have also raised concerns about the chipmaker sustaining its explosive growth.
Nvidia Stock Plunges 10% Amid Broader Stock Losses As Rocky September Kicks Off (Forbes)
Nvidia Gets DOJ Subpoena in Escalating Antitrust Probe (Bloomberg)