Nvidia Suffers $1.57 Trillion Market Value Loss as AI Spending Concerns Mount

New Delhi: US semiconductor giant Nvidia has lost approximately $1.57 trillion in market capitalisation after its shares plunged more than 26 per cent from their 52-week peak, entering bear-market territory amid growing concerns over the sustainability of artificial intelligence (AI) investments and mounting scrutiny surrounding CEO Jensen Huang.

According to a report by NDTV Profit, Nvidia's market capitalisation stood at $4.31 trillion at the close of trading on November 9, compared with approximately $5.88 trillion when its shares reached a 52-week high of $243.37.

The scale of the decline is particularly striking, as the value wiped out from Nvidia's market capitalisation exceeds the entire market value of electric vehicle manufacturer Tesla, estimated at around $1.49 trillion.

Nvidia shares closed at $178.67 on November 9, marking a decline of approximately 26.6 per cent from their peak. The stock has faced sustained selling pressure, falling 14 per cent over the past week and 22 per cent in the last 30 days. It has also declined 18 per cent over three months and 17 per cent over six months.

The sharp correction comes ahead of Nvidia's quarterly earnings announcement scheduled for November 17. Investors are increasingly assessing whether the massive investments by technology companies in AI infrastructure can be sustained and whether demand for advanced semiconductor chips will continue at its current pace.

Adding to the uncertainty, recent developments involving Huang have brought the company's leadership under increased scrutiny.

According to reports, Huang had engaged crisis communications firm Heller Inc. as early as October 2025, months before publicly acknowledging an extramarital relationship with a former executive of Singapore-based data centre company Megaspeed.

The firm was also reportedly involved in Nvidia's media response following questions about the company's chip sales and the possible diversion of advanced semiconductors to Chinese entities in violation of US export restrictions.

Megaspeed had reportedly acquired nearly $2 billion worth of Nvidia chips, the report added.

In a statement released on Sunday, Huang acknowledged having an affair with a former Megaspeed executive, without identifying the woman. He also apologised to his family and Nvidia employees.

Separately, Nvidia's board has announced an independent investigation following reports that Huang had been targeted in a foreign intelligence operation. The board said it had no reason to believe that national security or confidential company information had been compromised.

The matter also drew attention from US President Donald Trump, who said on Monday that the Federal Bureau of Investigation (FBI) was looking into Huang's relationship with the woman suspected of having links to Chinese intelligence.

Trump, however, expressed confidence in the Nvidia chief, saying he had spoken to him earlier in the day and describing him as a "very honourable man".

"I know the FBI is looking into it, in terms of something else, and I think that he'll be in good shape," Trump told reporters at the White House.

With its market valuation under pressure and questions emerging over its leadership, Nvidia faces an important test as it prepares to announce its quarterly results. Investors will be looking for indications of future revenue growth, continued demand for AI processors and the willingness of major technology companies to maintain their substantial spending on AI infrastructure.

Advertisement