Nvidia CEO Jensen Huang's net worth fell sharply on Nov. 9 as the chipmaker's shares extended their recent decline and decoupled from the broader Nasdaq 100 Index.

Bloomberg data shows Huang's fortune dropped to $148 billion on Monday, down by more than $6.4 billion, while Forbes estimated the chief executive lost $7.4 billion during early Monday trading — a gap that reflects the different methodologies wealth trackers use to value executives' holdings. Nvidia stock closed at $178.67, down 4.27%, despite gains across major U.S. indexes, leaving the shares in a technical bear market, generally defined as a decline of 20% or more from a recent peak. The decline followed an independent board investigation into reported foreign intelligence activity involving Huang, and added to uncertainty ahead of Nvidia's Nov. 17 earnings announcement.

A Month-Long Slide for Huang's Fortune

Jensen Huang's net worth has been in a pronounced downward trend over the past month. Bloomberg data shows the Nvidia co-founder's wealth dropped to $148 billion on Monday, a decline of over $6.4 billion. That figure is more than $15 billion lower than at the same period last year and well below the roughly $200 billion his fortune reached when Nvidia shares surged to a record high.

Huang remains one of the richest people in the world thanks to his stake in Nvidia, the second-largest company in the world. According to Bloomberg, he owns about 3.5% of the company, which he started in 1993, and ranks as the 12th-wealthiest person globally — a standing that has been heading in the wrong direction over the past few days. Because his fortune is anchored to that stake, every swing in the share price feeds directly into his net worth, which is how a single trading session can erase billions.

Other top billionaires have fared better in recent weeks. Elon Musk's wealth jumped by $48 billion on Monday to $894 billion, while Jeff Bezos added $6.68 billion to reach $375 billion. The other richest people in the world include Google's Larry Page and Sergey Brin, Meta Platforms' Mark Zuckerberg, and Dell Technologies' Michael Dell.

Decline Deepens After Spy Allegations

Huang's wealth has been falling in recent weeks as investors contend with ongoing fears of an AI bubble. Prominent investors such as Ken Griffin and Ray Dalio have warned that the bubble will burst as interest rates remain elevated.

The decline continued after Huang admitted to infidelity. In a letter to employees, he said he had cheated on his wife. His partner, Alice Huang, is believed to be a Chinese spy who passed information to the Chinese, according to a Bloomberg report. There are also allegations that the company or its partners have been smuggling advanced chips to China in violation of U.S. sanctions.

Nvidia's board is now investigating the matter, and some analysts have warned that Huang could be forced out of the company. During his tenure, the company's stock has jumped by more than 7,000% — a record that underscores the stakes behind the succession concerns raised in the Bloomberg report.

Nvidia Stock in Focus Ahead of Nov. 17 Earnings

Nvidia stock dropped sharply on Monday and diverged from the Nasdaq 100 Index, which jumped by more than 3%. The divergence is notable because Nvidia is one of the biggest players in the index: when a heavyweight constituent falls while the index rallies, it points to pressure specific to the stock rather than a broad market pullback.

Investors will now turn their attention to the company's earnings report, due next week. The results will provide more information about Nvidia's business at a time when jitters about the AI industry are mounting. Data compiled by Yahoo Finance shows analysts expect third-quarter revenue of $108 billion, up from $57 billion in the same period last year. That growth has been driven by ongoing AI demand, which has fueled a surge in data center development in the U.S. and other countries.

Nvidia has a long record of outperforming estimates. Its last earnings report showed second-quarter revenue rose to $104 billion, exceeding the $99 billion expected by analysts. That history sets a high bar for the Nov. 17 print, which will arrive with the board investigation still unresolved and will be measured against the $108 billion consensus.

Analysts maintain a bullish outlook on Nvidia shares. MarketBeat data shows the average analyst estimate stands at $317, much higher than the current price of about $178. Mizuho's Vijay Rakesh sees the stock rising to $250, while Royal Bank of Canada (RBC) and Goldman Sachs have targets of $330 and $300, respectively. Melius Research, Needham, and Yorkville Ives have targets of $315 and $300, respectively.

Disclaimer: This article provides financial information, not investment advice. Stock prices fluctuate, and individual wealth estimates vary with market valuations. Readers should conduct independent research and consult qualified financial professionals before making investment decisions.

Originally published by The Market Periodical.