Jensen Huang Loses $7.4 Billion as Nvidia Shares Slide Amid Espionage Reports and Shareholder Suit

On Monday, November 9, the first half hour of trading on Wall Street took $7.4 billion off Jensen Huang's personal fortune. Forbes put his estimated net worth at $154.7 billion after the drop, which moved the Nvidia co-founder from eighth to 10th on its real-time billionaires ranking. He slipped below Warren Buffett of Berkshire Hathaway and Larry Ellison, the Oracle co-founder.

The cause was a sell-off in Nvidia shares. They fell 4.3 per cent on the day, erasing about $190 billion from the company's market capitalisation. The stock had been down as much as 7 per cent in premarket trading, and Forbes reported a decline of around 5 per cent by 11 am Eastern Time. Huang owns more than 3.5 per cent of Nvidia and is its largest individual shareholder, so even a modest move in the share price translates into billions on his balance sheet.

The sell-off followed Nvidia's announcement of an independent investigation into reports that Huang may have been targeted by a foreign intelligence operation. The reports centre on his relationship with Alice Huang, a former executive at Megaspeed International, a Singapore-based Nvidia customer. According to Reuters, US authorities had investigated allegations that she was a Chinese intelligence asset. Megaspeed has also faced scrutiny over suspicions about access to advanced Nvidia chips that fall under US export restrictions.

The intelligence allegations have not been established as findings of Nvidia's investigation. They are also separate from what Huang himself admitted. In a message to employees on November 8, he acknowledged being unfaithful to his wife, Lori Huang, apologised to his family and accepted responsibility. Nvidia's board then said independent directors, assisted by outside legal counsel, would examine the reported foreign intelligence effort. The company said it had no reason to believe US national security or Nvidia's confidential information had been compromised, and the board expressed confidence in Huang and his leadership team.

A legal front opened after the market closed on Monday. Nvidia and Huang were named in a proposed shareholder class-action lawsuit filed in federal court in San Jose, California. According to Reuters, it alleges they failed to disclose information about Huang's reported relationship and the national security risks that might come with it. The shareholders argue that the lack of disclosure could have misled investors about risks to Nvidia's business and reputation. The suit seeks unspecified damages, and its allegations have not been proven in court.

The drop came on top of earlier losses. The Bloomberg Billionaires Index put Huang's wealth at about $150.9 billion on November 6, after a $15.1 billion decline during a weak stretch for technology stocks. The Forbes and Bloomberg figures differ because the trackers use different valuation methods, asset assumptions and reference times. The pressure on Nvidia also reflects wider investor worry over the sustainability of the AI investment boom, the valuations attached to it and the heavy spending on AI infrastructure.

Huang's admission has also prompted speculation about a divorce, though no separation or filing has been announced. He married Lori in 1985, eight years before he co-founded Nvidia in 1993. They met at Oregon State University and have two children. At Forbes' $154.7 billion figure, an even split would come to about $77.35 billion each, but the source stresses the arithmetic is purely illustrative. California's community property law generally calls for equal division of marital property, not necessarily of a person's entire estimated net worth, and separate property, trusts, ownership structures and valid marital agreements could change the outcome materially.

Forbes' later estimate for November 9 placed Huang's fortune at $155.4 billion, still 10th in the world. What happens next turns on the outcome of the board's independent investigation, the progress of the San Jose class action, and whether Nvidia can keep investors confident in its leadership while it also faces questions over AI valuations, export controls and geopolitical tension.