Nvidia has lost approximately $1.57 trillion in market value since its shares touched a record high in October, with the sell-off driven by concerns over artificial intelligence spending, regulatory uncertainty and allegations involving CEO Jensen Huang and a suspected Chinese intelligence operative.
The company’s market capitalisation fell from around $5.88 trillion to $4.31 trillion at the November 9 close. The decline is equivalent to roughly one-third of India’s annual GDP, estimated at $4.06 trillion, and exceeds Tesla’s entire market value of approximately $1.49 trillion.
Nvidia shares closed at $178.67 on November 9, down around 26% from their 52-week high of $243.37. The stock has fallen 14% over the past week and 22% over the past month, entering bear-market territory.
China spy allegations add to investor concerns
The sell-off comes amid reports that Nvidia’s board has launched an independent investigation into allegations that Huang was targeted by a foreign intelligence operation involving a woman suspected of working for Chinese intelligence.
Media reports identified the woman as Alice Huang, a former executive at Singapore-based data centre company Megaspeed. A reported US intelligence memo allegedly linked her to China’s Ministry of State Security. These allegations have not been independently established.
Huang has acknowledged an intimate relationship with a business executive and agreed to cooperate with the investigation. Nvidia’s board has said it has no reason to believe that US national security or company secrets have been compromised.
Market observers have cautioned against treating the allegations as evidence of a deterioration in Nvidia’s business fundamentals. Investors will continue to assess demand for AI infrastructure, revenue growth, profitability and the company’s response to the controversy.
November 17 earnings in focus
Nvidia’s upcoming earnings announcement on November 17 is expected to be an important indicator of investor confidence.
The company reported revenue of $96.2 billion in the second quarter of fiscal 2027, more than double its year-earlier figure. Its data centre business contributed $89 billion, accounting for over 92% of total revenue.
For the third quarter, Nvidia has projected revenue of $108 billion, plus or minus 2%.
Despite the recent correction, Wall Street analysts remain broadly positive, with an average 12-month price target of $327.14, according to the report. The upcoming results will offer investors a fresh opportunity to assess whether demand for AI chips can sustain Nvidia’s growth expectations.
Source: NDTV
