Nvidia’s market value sinks below US$4 trillion after CEO Jensen Huang resigns
The chipmaker, the world’s biggest company just weeks ago, is now below Apple and Microsoft
Nvidia, once the world's largest company, has seen its market value drop below $4 trillion after CEO Jensen Huang resigned following revelations of two affairs, one involving a suspected Chinese spy. The company's stock plummeted at the opening bell on Thursday, losing up to 14% of its value, bringing its market capitalisation below $4 trillion for the first time since 2025.
This significant decline is the largest one-day wipe-out for any stock, erasing approximately $601 billion in market value. The rapid decline follows a 35% drop from a record high in early October, bringing Nvidia's market value down by $2 trillion in just a few weeks. The chipmaker, previously the most valuable company globally, is now worth less than $3.8 trillion, falling below Apple and Microsoft.
Huang's leadership has come under scrutiny since Sunday when he admitted to a romantic relationship with Alice Huang, a former executive suspected of Chinese espionage. On Wednesday, The New York Times reported additional allegations of Huang's involvement in a relationship with Nvidia's vice-president of healthcare, Kimberly Powell.
The company announced Huang's departure before the market opened on Thursday, appointing CFO Colette Kress as interim CEO and board member Harvey Jones as the first-ever chairman. The scandal coincides with Nvidia's third-quarter earnings report due on Tuesday, with the company expected to showcase strong growth despite the scandals.
However, investors and analysts are reportedly fleeing the stock, with at least seven Wall Street firms downgrading Nvidia over the past week. The scandals also raise concerns about the overall strength and longevity of the AI trade, as major Nvidia customers like Alphabet, Amazon, and Meta Platforms reveal waning patience for heavy AI spending.
The US midterm elections have also contributed to investor apprehension, as many voters oppose data centres in their communities, potentially impacting demand for chipmaking and AI infrastructure. Nvidia's stock is down 15% in 2026, on track for its poorest year since 2022, while the Philadelphia Stock Exchange Semiconductor Index is up 47% this year.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
