₹47,10,05,00,00,000 wiped out: How Jensen Huang’s ‘multiple affairs’ outside wedlock plunged Nvidia into crisis

Detailed summary

Nvidia shares reportedly lost about $490-500 bn (Roughly 47 lakh cr) in market value over last few days, courtesy - co-founder Huang's alleged ‘affairs’. | World News

A rapid-fire series of personal revelations, part of which also became national security concerns, surrounding Nvidia co-founder Jensen Huang triggered a historic selloff in company's shares this week, reportedly wiping out roughly $490 billion to $500 billion (Roughly ₹4,710,050 crores or ₹47 lakh crore) in market capitalisation and culminating in Huang's abrupt resignation on Thursday morning amid allegations of multiple extramarital affairs.

What began over the weekend as a probe into his illicit relationship with Megaspeed executive Alice Huang, alleged to be a Chinese spy, escalated within four trading days into the exit of the 63-year-old executive who led the chipmaker for 33 years.

The crisis ignited over the weekend when Huang admitted in a letter to employees that he had been "unfaithful" to his wife, confirming an extramarital affair with Alice Huang (no relation), a former executive at Singapore-based data center operator Megaspeed International. The New York Times reported in October that Huang had a relationship a suspected Chinese spy, the same was reported by the Financial Times on November 6.

US intelligence officials reportedly circulated a memo this spring flagging suspicion that Alice Huang was recruited by China's Ministry of State Security to gather intelligence and help circumvent US chip export restrictions. In response, Nvidia's board announced an independent investigation into whether national security or proprietary secrets were compromised.

Investors reacted swiftly when US markets opened on Monday. Nvidia shares fell 4.3 per cent on Monday and dropped another 5.5 per cent on Tuesday to close at $168.47-a combined 9.6 per cent two-day slide that erased more than $430 billion in market value, according to CBS News and The Times.

Forbes had reported that personal fortune of Huang, who was still the Nvidia CEO, ₹69,520.82 crore) hit in the first half-hour of trading on Monday">took a $7.4 billion (Around ₹69,520.82 crore) hit in the first…

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