Jensen Huang Drops Out of Top 10 Richest Individuals Due to Nvidia Stock Decline

Nvidia CEO Jensen Huang has slipped from being among the world’s 10 wealthiest individuals, now ranking 12th according to the Bloomberg Billionaires Index. The drop corresponds with a decrease in Nvidia’s share price.

Over recent weeks, Huang’s net worth has moved in tandem with the company’s stock performance. New developments about a potential ‘foreign intelligence effort’ targeting him have further impacted Nvidia’s value. Nvidia experienced a notable 9% drop in its stock on Monday, ultimately recovering slightly to close 4.3% lower at $178.67 per share.

Huang’s wealth decreased by $6.5 billion to $148 billion, placing him just below Rob Walton, former Walmart chair, in the rankings. Previously positioned 10th last Friday and as high as 7th in October, his net worth decrease is linked to Nvidia’s stock, as Huang owns over 870 million shares.

Nvidia’s stock has plummeted 21% over the past month and 27% from its peak on October 6 at $243.37. Investor apprehension about delays in AI infrastructure development, exacerbated by the tech sector’s sell-off due to concerns over neocloud companies’ debt and new political stances on data center construction, has been a significant factor.

Last week, Huang temporarily fell out of the top 10 amid severe market sell-offs, later regaining his position.

The latest catalyst for Nvidia’s stock decline occurred after the board announced an investigation into allegations that Huang was targeted by foreign intelligence. Additionally, Huang issued a company-wide apology to his staff regarding personal issues involving Lori Huang, his wife, of over four decades.

The New York Times previously reported that U.S. intelligence suspected a close link between Huang and Alice Huang, a Chinese citizen and former executive at Megaspeed, a data center company based in Singapore. Moreover, U.S. officials viewed her company as channeling Nvidia’s advanced AI chips to China and identified her as a Chinese intelligence asset.

As Nvidia’s long-standing CEO, Huang’s leadership is considered pivotal to its achievements. Investors are likely factoring in the potential risk that the investigation could lead to his exit from Nvidia.