
Market capitalization evaporates by $400 billion in two days after CEO Hwang admits to having an affair with a Chinese spy
AI-generated summary
Nvidia's market capitalization exceeded $4 trillion in July of last year. CEO Hwang acknowledged and apologized for his affair with former Megaspeed executive Alice Hwang, who was accused of being a spy for Chinese intelligence agencies.
NVIDIA's stock price plummeted due to CEO Jensen Huang's 'Chinese spy affair' scandal, losing its second place in global market capitalization at one point.
As of 12:15 p.m. Eastern time on the 10th (local time), NVIDIA stock was trading at $167.35, down 6.3% from the previous day's closing price.
Accordingly, NVIDIA's market capitalization appears to be shaking from the $4 trillion mark it reached in July of last year, fluctuating between $4.03 trillion and $4.05 trillion.
As a result of the CEO Hwang incident, $400 billion (about 540 trillion won) in market capitalization evaporated in just two days.
Due to the plunge in stock price, NVIDIA's market capitalization ranking fell to third place at one point during the day, behind not only Apple, which ranked first, but also Microsoft (MS).
This is the first time since June of last year that Microsoft's market capitalization has surpassed Nvidia.
However, thanks to the low-price buying trend, Nvidia's stock price rebounded slightly to $167.75 as of 1:15 p.m., and immediately regained the second place in market capitalization.
On the 8th, CEO Hwang acknowledged and apologized for having an affair with former Megaspeed executive Alice Hwang, who was pointed out as a spy for the Chinese intelligence agency.
Dan Ives, a partner at Yorkville Ives who specializes in technology stocks, analyzed that CEO Hwang's scandal would "act as a negative burden" on the stock price.
AI outlook — possibilities, not facts
NVIDIA stock price will be volatile in the short term
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