Nvidia inventory value plunges amid second Jensen Huang affair allegation — the AI firm might be set to lose tons of of billions in worth

With a Democratic midterm win, a mini AI crash in China, and Jensen Huang admitted to an affair this Sunday, Nvidia was already in a good spot. Now, a second affair allegation has come out about Nvidia’s CEO, and the AI firm’s share value has taken successful in consequence.

This reported second affair is alleged to be with one other Nvidia exec, Kimberly Powell, and now the GPU firm turned AI firm is investigating whether or not or not it ought to oust the long-time CEO.

Naturally, that instability is worrisome to some traders, who look like signalling mistrust in the direction of the corporate in mild of those scandals.

To place the inventory dip into perspective, at shut on Friday, Nvidia inventory was price $188.70 a share, a dip from a excessive of $239.24 on October 6. This morning, after-hours buying and selling places it at $161.88, as of the time of writing. We have not seen a share value as little as this for Nvidia since effectively over a yr in the past, on the finish of June 2025.

With this after-hours buying and selling determine in thoughts, Nvidia’s market cap (share value multiplied by excellent shares) works out to round $3.93 trillion, which is just below half a trillion lower than its market cap earlier than the affair with Alice Huang got here out (between $4.3 and $ 4.5 trillion).

Accounting for a share value of $173.73 at shut yesterday, that will make a $300 billion dip in a single day (from $4.2 to three.9 trillion). Naturally, one cannot assume that downward trajectory will proceed to say no, but when Huang is actually let go, Nvidia shares may see an additional drop.

This does not imply Nvidia will likely be closing its doorways tomorrow. Actually, it is nonetheless a massively precious firm that continues to be a market chief within the AI {hardware} arms race. If you need a top-of-the-line AI chip, you are going to Nvidia earlier than anybody else. And AI has confirmed to be excessively precious over the previous few years, turning Nvidia into probably the most precious firm on this planet at one level (although Apple has since surpassed it).

Nonetheless, because the Nvidia board ruminates on whether or not or to not eliminate arguably its figurehead at this level, it is unclear the place the corporate goes subsequent and what it’s going to do to regain that worth. My guess is an increasing number of AI and sadly no more inexpensive gaming GPUs. Sorry, individuals.