New Delhi: US chipmaker Nvidia has lost around $1.57 trillion in market capitalisation after its shares plunged more than 26 per cent from their 52-week high with entering bear-market territory amid investor concerns over artificial intelligence (AI) spending and growing scrutiny surrounding its Chief Executive Officer Jensen Huang.
The company’s market capitalisation stood at $4.31 trillion at the close of trading on November 9, down from approximately $5.88 trillion when its shares touched a 52-week high of $243.37, according to a report by NDTV Profit.
Moreover, the estimated erosion in market value is larger than the entire market capitalisation of electric vehicle manufacturer Tesla, which stands at around $1.49 trillion.
Nvidia shares closed at $178.67 on November 9, a decline of around 26.6 per cent from their 52-week peak.
The stock has also witnessed sustained selling pressure, falling 14 per cent over the past week and 22 per cent over the last 30 days.
It has declined 18 per cent over three months and 17 per cent over six months.
The sharp correction comes ahead of the company’s quarterly earnings announcement scheduled for November 17 with investors closely monitoring the sustainability of global AI infrastructure spending and demand for advanced semiconductor chips.
Adding to the company’s challenges, recent developments involving Huang have brought the chipmaker’s leadership under increased scrutiny.
As per reports, Huang had engaged crisis communications firm Heller Inc. as early as October 2025, months before publicly acknowledging an extramarital relationship with a former executive of Singapore-based data centre company Megaspeed.
The communications firm was also brought into Nvidia’s media response process following questions raised over the company’s chip sales and possible diversion of advanced semiconductors to Chinese entities in violation of US export restrictions, they added.
Moreover, Megaspeed had reportedly acquired nearly $2 billion worth of Nvidia chips, the report said.
In a statement released on Sunday, Jensen Huang acknowledged having an affair with a former Megaspeed executive, without naming the woman.
He also apologised to his family and Nvidia employees.
Separately, Nvidia’s board announced an independent investigation following reports that Huang had been targeted in a foreign intelligence operation.
The board said it had no reason to believe that national security or confidential company information had been compromised.
US President Donald Trump on Monday said the Federal Bureau of Investigation (FBI) was looking into Huang’s relationship with the woman suspected of having links to Chinese intelligence, while expressing confidence in the Nvidia chief.
Trump said he had spoken to Huang earlier in the day and described him as a “very honourable man”.
“I know the FBI is looking into it, in terms of something else, and I think that he’ll be in good shape,” Trump told reporters at the White House.
Investors are now awaiting Nvidia’s upcoming earnings announcement for indications of future revenue growth, demand for AI processors and the pace of spending by major technology companies.
(IANS)
