Jensen Huang lost nearly $12 billion on Thursday as a chipmaker selloff sparked by post-election fears that Democrats will slow the data center buildout hit Nvidia, sending its chief down two spots on Forbes’ Real-Time Billionaires list.
Key Facts
Huang’s estimated net worth was down 6.9% at $161.7 billion as of 12:15 p.m. EDT on Thursday.
Nvidia shares sank 7% as part of a broader chipmaker selloff, putting its market capitalization at $4.45 trillion.
The tumble caused Huang to fall from No. 7 to No. 9 in the billionaire rankings, passed by Microsoft’s Steve Ballmer with an estimated worth of $166.8 billion, down $3.4 billion on a 2.5% stock drop, and Berkshire Hathaway’s Warren Buffett, with $165 billion.
Chipmakers and memory stocks including Micron, AMD, Intel, SanDisk, TSM, Qualcomm and Marvell are suffering for a second day after Tuesday’s midterms, where Democrats took control of the House and Senate, with many pledging heightened restrictions on data centers.
Huang lost around $3.2 billion on Wednesday as Nvidia shares fell 1.5% on growing AI-spending fears in the wake of the election results.
Huang lost around $3.2 billion on Wednesday as Nvidia shares fell 1.5% on growing AI-spending fears in the wake of the election results.
Key Background
Nvidia was on track at the start of October to become the first company in the world to reach a $6 trillion market cap, but the month proved rough for tech stocks as investor concerns about return on investment for substantial AI spending grew and major companies posted disappointing earnings. In Nvidia’s second quarter, it reported $89 billion in data center revenue, up 117% year over year and accounting for around 92% of its total revenue. It will now need to navigate heightened investor jitters in the wake of Tuesday’s election results, compounding what had already been a tough few weeks for the company.
Forbes Valuation
Huang was one of the billionaires who lost the most on Wednesday after Democrats took the House and Senate. Other big losers included Elon Musk, who had lost around $34.5 billion by the afternoon and Michael Dell, who lost $11.3 billion. Both Musk and Dell are down again today, losing $75.5 billion and $16.5 billion, respectively, according to Forbes’ Real-Time Billionaires list.
What to Watch for
Nvidia is set to report its third-quarter earnings on Nov. 17 after market close.
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