NVDA: Nvidia Stock Falls 6.3% to $2.5 Trillion, CEO Jensen Huang Loses $6 Billion

Nouveau riche boss scaled down his fortunes to $89 billion after the wipeout session cost the chipmaker $170 billion.

• Nvidia stock NVDA led the broad-based technology rout on Monday, losing 6.3% of its market cap, or $170 billion, to sit on $2.5 trillion. The painful downturn cost the company’s chief executive Jensen Huang as much as $6 billion thanks to his 3% stake in the chipmaker. Huang now boasts a personal fortune of $89 billion, taking the 16th place on the world’s richest list. This year, Jensen has been the biggest nouveau riche person, adding $45 billion to his net worth.
• Recession worries swept markets out there with tech taking the biggest hammering due to their volatile nature and, some would say, lofty and frothy valuations. Traders sold off shares of tech giants in fears that the Federal Reserve had missed the window of opportunity to lower interest rates and now it may be too late. Fortunately, a powerful rebound took place on Tuesday with stock futures all shooting higher.
• Back to Nvidia, weighing on the stock further was a weekend report that said one of the company’s next-generation chips — Blackwell GPU — may be delayed over a just-discovered design flaw. Nvidia’s massive chips are largely responsible for building out the infrastructure layer of the artificial intelligence wave that is sweeping across the tech industry. These chips are also behind the monster gains in Nvidia’s share price — up 108% year to date.