NEW YORK: Nvidia Chief Executive Officer Jensen Huang reportedly suffered a $7.4 billion decline in his personal wealth in a single day, pushing him down two places on the list of the world’s richest people.
According to international media reports, the sharp decline followed a fall in Nvidia’s share price. Reports concerning Huang’s personal life and an investigation into alleged links with a suspected Chinese intelligence operative have also attracted investors’ attention.
According to Forbes’ billionaire rankings, Huang’s estimated net worth fell from $162.2 billion to $154.7 billion during the first half-hour of trading on November 9. As a result, he dropped from eighth to 10th place among the world’s wealthiest individuals.
He also fell behind Berkshire Hathaway chief Warren Buffett and Oracle co-founder Larry Ellison.
Personal Controversy and Investigation
The decline in Huang’s wealth comes amid reports of controversy surrounding his personal life and his alleged connections with Alice Huang, a businesswoman reportedly suspected of collecting information for China.
Huang recently acknowledged being unfaithful to his wife, Lori Huang, and apologised to his family.
His relationship with Alice Huang has also come under scrutiny, while reports of suspicions involving her alleged activities have drawn attention from US intelligence agencies.
Nvidia’s board has reportedly established a committee comprising independent directors and external legal experts to investigate the matter.
The company’s board has said there is currently no evidence indicating that national security information or Nvidia’s confidential corporate information has been disclosed.
Huang continues to serve as Nvidia’s chief executive and has assured the company that he will cooperate with the investigation.
Nvidia Shares Closely Linked to Huang’s Wealth
Huang owns more than 3.5 per cent of Nvidia’s shares, making him the company’s largest individual shareholder.
A substantial portion of his personal fortune is tied to the value of his Nvidia stock rather than his salary.
Consequently, even a relatively small decline in the company’s share price can reduce his net worth by billions of dollars. Similarly, a recovery in the stock price could increase his wealth again.
Huang is currently facing scrutiny over the company’s leadership and a personal controversy, developments that have added uncertainty around one of the world’s most prominent technology companies.
