US chipmaker Nvidia lost $1.57 trillion in market value as shares plunged over 26 percent into bear-market territory.
Investor concerns over artificial intelligence spending and scrutiny surrounding CEO Jensen Huang triggered the steep sell-off.
By November 9, Nvidia’s market capitalisation dropped to $4.31 trillion from a $5.88 trillion peak.
This massive value erosion exceeds electric vehicle maker Tesla’s entire $1.49 trillion market valuation.
Nvidia shares closed at $178.67, falling 26.6 percent from their 52-week high of $243.37.
The stock dropped 14 percent last week and 22 percent over the past month amid sustained selling pressure.
Shares also declined 18 percent over three months and 17 percent across six months.
This sharp correction precedes Nvidia’s November 17 quarterly earnings report, where investors will assess global AI infrastructure demand.
Meanwhile, recent personal and regulatory controversies have placed Huang’s leadership under intense public scrutiny.
Reports reveal Huang hired crisis firm Heller Inc. in October 2025 before acknowledging an extramarital affair.
The firm also managed media responses regarding potential illegal diversions of advanced Nvidia chips to Chinese entities.
Singapore-based data centre firm Megaspeed, where the woman worked, reportedly bought nearly $2 billion in Nvidia chips.
On Sunday, Huang publicly admitted to the affair and apologised to his family and Nvidia employees.
Nvidia’s board launched an independent investigation after reports suggested a foreign intelligence operation targeted Huang.
However, the board found no evidence that anyone compromised national security or confidential company data.
On Monday, US President Donald Trump confirmed the FBI is investigating Huang’s relationship with the woman.
Trump called Huang an honourable man and expressed confidence that the executive would emerge in good shape.
Investors now await Nvidia’s upcoming earnings to gauge future revenue growth and tech sector spending.
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