Huang Falls to $150.9 Billion as Nvidia Faces AI Rout Pressure

Nvidia’s shares fell 18.6% over the past month as the chipmaker joined AI and technology peers in an estimated $2.5 trillion rout last week. Investors weighed tighter regulation under divided government after Democrats won the Senate, the House and many statehouses in the midterms.

How far did Huang’s wealth fall?

Huang’s paper wealth, tied to the computer-processor and AI company he co-founded, stood at just over $171 billion early last week before falling to $150.9 billion by Thursday, according to Bloomberg’s Billionaires Index. The rout had cut about $21 billion from his fortune.

Friday brought a brief reversal, with his net worth rebounding to $154.9 billion. The direction still tracked Nvidia’s declining share price.

Another shock arrived over the weekend. In a statement shared overnight, Huang admitted an affair with a woman identified in published reports as a suspected Chinese spy.

Huang said: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.” He also told colleagues: “To my colleagues at NVIDIA … you deserve better from me. Leading NVIDIA is the privilege of my life.”

He said his responsibility was to serve colleagues and be worthy of their trust, adding: “I have fallen short of that responsibility.” Huang also said he would work to “earn back” the confidence of the board, partners and company shareholders.

Huang’s disclosure has become a material risk for Nvidia, not merely a private scandal.

What does Nvidia’s investigation cover?

Nvidia’s board said it launched an independent investigation “in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort.”

The board said it had no reason to believe sensitive national-security information or Nvidia “secrets” had been compromised. It nevertheless said it would “examine all available information.”

China’s government denied involvement in the alleged spy plot and called the debacle “nothing but smears.”

No compromise has been established, and the investigation remains open.

How are markets reacting?

Analysts were digesting the news before New York markets opened. Asian equities rallied, noted Deutsche Bank’s Jim Reid, “although concerns surrounding an internal investigation involving Nvidia CEO Jensen Huang are capping gains.”

Asia rose. Weekend pricing pointed the other way.

Reid said Nvidia was down around 3.5% on platforms providing weekend prices, showing that the founder-related concern survived Friday’s brief recovery. Nvidia remains the premier supplier of chips to AI companies and one of the largest investors and guarantors of businesses across the AI supply chain, backing them to the tune of hundreds of billions.

For now, the founder investigation is capping gains even as broader equities rally.

Can Huang survive as CEO?

Prediction market Kalshi placed the odds of Huang leaving Nvidia before July 27 at 25%. Jeffrey Sonnenfeld, senior associate dean for leadership studies at the Yale School of Management, put the odds of his resignation at 50-50.

Support was broad. Succession was thin.

Huang owns Nvidia’s largest single stake, and his children are among the company’s employees. If he leaves, there is no obvious successor.

President Donald Trump said: “I have not spoken to [Huang] about it,” while also saying, “I just know he’s a fine person, but you never know what is going on.” Trump said Huang had “done an amazing job for our country” and expected him to continue leading Nvidia.

Nvidia’s board separately said it has “confidence in Jensen and his leadership team.” Public backing remains strong, but the investigation and the lack of an obvious successor leave Huang’s position unsettled.