NVIDIA could lose approximately USD 270 billion in market capitalization as its shares come under pressure, adding to the chipmaker's recent stock market troubles.
The potential decline follows reports surrounding CEO Jensen Huang and an alleged foreign intelligence operation involving his reported relationship with a former executive.
The latest development comes as investors remain cautious about the artificial intelligence (AI) industry and its growth prospects.
NVIDIA shares fell more than 6% in Frankfurt trading on Monday, November 9, potentially wiping out around USD 270 billion from its market value. The decline follows losses recorded last week and has pushed the company's shares to multi-month lows. However, the potential loss is smaller than two major market value declines NVIDIA experienced previously.
On January 27, 2025, NVIDIA stocks fell by almost 17% due to the appearance of DeepSeek, an artificial intelligence startup from China. This AI startup posed threats of decreased demand for expensive AI hardware because of the relatively cheap AI models offered.
This became the largest one-day market capitalisation loss ever reported on Wall Street. Previously, on September 3, 2024, NVIDIA's market value lost USD 279 billion when its stocks fell by 9.5%. This occurred against the backdrop of general market losses on Wall Street and decreasing hopes for artificial intelligence.
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The latest decline also comes amid reports that US intelligence officials believe Jensen Huang was targeted in a foreign intelligence operation involving Alice Huang, a former executive at Singapore-based Megaspeed.
NVIDIA announced an independent investigation on Sunday. Huang acknowledged being unfaithful to his wife but did not publicly disclose details of his relationship with Alice.
The company's board has expressed confidence in Huang, stating that it has no reason to believe national security or trade secrets were compromised. Beijing has rejected the espionage allegations as baseless.