New York: Nvidia has lost $1.6 trillion in
market value since hitting its October record, an amount equivalent to roughly
one-third of India's annual gross domestic product, which stands around $4.06
trillion. The company's market capitalisation fell to $4.31 trillion as of the
November 9 close, from approximately $5.88 trillion when its shares touched
their 52-week high. The $1.57 trillion erosion is now larger than Tesla's
entire market value of around $1.49 trillion.
Nvidia shares have entered bear-market
territory, falling more than 26 percent from their 52-week high of $243.37,
closing at $178.67 on November 9, down 14 percent over the past week and 22
percent over the past month. The sell-off comes amid concerns over the
sustainability of AI spending, regulatory uncertainty and developments
involving Nvidia CEO Jensen Huang.
The company's board has launched an independent investigation into reports that Huang was targeted by a foreign intelligence operation involving a woman identified in media reports as a suspected Chinese intelligence operative. Huang reportedly admitted to employees that he had an affair with Alice Huang, a former executive at Singapore-based data centre company Megaspeed.
A classified US intelligence memo reportedly identified her as a suspected recruit of China's Ministry of State Security, though the allegations have not been independently established. Nvidia's board said it had no reason to believe US national security or company secrets had been compromised, and Huang has agreed to cooperate with the investigation and continues to serve as CEO.
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