Nvidia CEO Jensen Huang's net worth fell by $15.1 billion to $150.9 billion. This drop moved him from ninth to 13th on the Bloomberg Billionaires Index. The decline followed a major sell-off in tech stocks after the U.S. midterm elections. Concerns about possible restrictions on data center expansion, important for artificial intelligence (AI) infrastructure, contributed to this sell-off. Nvidia shares fell 9.3%, marking the largest single-day drop since January 2025.
Key Details
The Nasdaq composite index dropped 5.52%, entering correction territory as AI stocks led the losses. Nvidia's market value has decreased by about $440 billion. Competitors like AMD also faced significant declines. Analysts link the sell-off to fears of tighter regulation and a slowdown in investments in data centers, which are crucial for AI operations.
Background
Other notable figures also saw big losses. SpaceX's Elon Musk lost $79.7 billion, and Oracle co-founder Larry Ellison lost $10.1 billion. The total loss among the wealthiest individuals on the Bloomberg index reached $185 billion. This is one of the largest one-day drops since the index began in 2012. The recent sell-off sharply contrasts with the previous strong performance of tech billionaires, who made up 36% of the index's total wealth amid AI growth.
Related coverage: Nvidia Commits Nearly $10 Billion to German AI Initiatives, Micron Stock Drops 41% in Four Months Amid Market Turmoil.
The drop in Nvidia's stock price and the wider decline in tech stocks could lead to more volatility in the semiconductor sector. Investors may rethink their positions in AI-related companies, especially those that depend on data center investments.
Watch for upcoming earnings reports from major tech firms. These may offer more insight into the effects of these market changes.
Based on reporting by: businesstimes.com.sg, moneycontrol.com