Nvidia's stock plummeted by 9.5% on Tuesday, marking the largest single-day market value loss in Wall Street's history, with the company shedding $279 billion. Previously, the record was held by Meta, which lost $232 billion in one trading day in February 2022.
Nvidia's CEO saw a $10 billion drop in personal wealth overnight. The decline in tech stocks, led by Nvidia, slashed the personal fortune of the chipmaker's chief. Bloomberg's Billionaires Index notes that Jensen Huang's wealth shrank by about $10 billion, now at $94.9 billion—the steepest drop since Bloomberg began tracking his wealth in 2016.
Nvidia's AI chip success and rivals' struggles to offer alternatives have made it a key supply chain component for major global companies. However, Nvidia's shine has dimmed recently, partly due to reports that the U.S. Department of Justice plans to investigate the company.
Insiders reveal the Department of Justice issued subpoenas this week for information as part of the investigation. The main suspicion is that Nvidia makes it difficult for customers to switch suppliers and penalizes those who do not exclusively use its AI chips.
Last week, Nvidia reported a 122% revenue surge in the last quarter to $30.04 billion. Despite this, the company's stock fell nearly 7% post-earnings release. "It faced unrealistically high expectations," Bloomberg analysts commented.
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Still the richest man in the world, Elon Musk
(Photo: Muhammed Selim Korkutata / Anadolu Agency)
Huang ranks 18th among the world's richest people, with his wealth having expanded by $51 billion in the past year alone. Elon Musk remains the world's richest, with an estimated fortune of $237 billion according to Bloomberg.
Following sharp market declines, the wealth of 9 out of the 10 richest people decreased. Musk's fortune shrank by $2.51 billion, while Meta CEO Mark Zuckerberg's wealth fell by over $3 billion to $182 billion. The only top ten person to see an increase was Warren Buffett, whose fortune rose by $126 million to $150 billion, ranking him seventh.