Nvidia is staring at a potential $470 billion wipeout in market capitalisation over two trading sessions as its shares extend losses amid growing concerns surrounding CEO Jensen Huang's alleged links with a Chinese businesswoman suspected of being a spy. The sell-off has also seen Microsoft overtake the AI chipmaker to become the world's second-most valuable company.
Nvidia shares closed at $168.8 on Nov. 10, down $9.8744, or 5.53%, from the previous close of $178.67 on Nov. 10 and $186.64 on Nov. 6, on Nasdaq. Its latest market capitalisation stood at approximately $4.07 trillion.
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China Spy Controversy Adds To Pressure
The controversy centres on reports about Huang's alleged relationship with Singapore-based businesswoman Alice Huang, who has been accused of having links with Chinese intelligence. Reports have also raised questions about the movement of Nvidia chips to Chinese firms.
Nvidia's board has launched an independent investigation into the allegations, while US lawmakers have sought briefings from Huang. The company has said it has no reason to believe that US national security or its business secrets have been compromised.
Nvidia's Market Value Under Pressure
The latest sell-off has also pushed Nvidia below Microsoft in the global market-capitalisation rankings, with the software giant reclaiming the position of the world's second-most valuable company.
The correction comes as investors reassess the sustainability of massive artificial intelligence infrastructure spending and the returns expected from the sector. Nvidia's next quarterly results, scheduled for Nov. 17, will provide another reading of demand for AI chips and the outlook for its business.
Also Read: Nvidia Dethroned On CEO Probe: Microsoft Tops Chipmaker As World's Second-Most Valuable Firm
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