Nvidia falls more than 6%, no longer 2nd biggest company by market value

Nvidia's stock experienced a significant decline of over 6% on Tuesday, as heightened scrutiny surrounding the artificial intelligence company deepened following CEO Jensen Huang's admission of an affair with a woman suspected to be a Chinese spy. By 1715 GMT, the chip specialist was trading at $167.35, marking a loss of 6.3% from its previous value.

Since the weekend revelations about Huang, Nvidia's market capitalization has plummeted by more than $400 billion, relegating the company to third place among the world's largest firms in terms of market value, trailing behind Apple and Microsoft.

The allegations of Chinese espionage on Nvidia were a dominant topic at the Web Summit in Lisbon on Tuesday, with some executives perceiving potential opportunities amidst the turmoil at the US artificial intelligence chip giant. Huang is now under investigation, and with Nvidia earnings just eight days away, the stock continued to wobble. The board is probing Huang regarding the China spy reports, further clouding the company's future prospects.