Nvidia’s CEO, Jensen Huang, faced a major financial hit as the company’s stock dropped by 6.4% on August 29, 2023. This significant decline made it the biggest stock drop in the world that day, slashing Huang’s net worth by $6.9 billion in just one session. Despite this setback, Huang still ranks 14th on the global wealth list, with an estimated net worth of $103 billion.
The stock dip followed Nvidia’s Q2 earnings report, which, although impressive, failed to satisfy investors. The company recorded a revenue of over $30 billion, up 122% year-over-year, and profits surged to $16.6 billion. However, Nvidia’s stellar growth over the past two years, with revenue jumping over 200% in previous quarters, had set higher expectations. Investors seemed concerned about whether Nvidia could sustain its momentum, especially as doubts arose over the long-term profitability of the AI boom.
Another factor adding to investor anxiety was speculation about potential delays in the launch of Nvidia’s new Blackwell chips, despite company reassurances that revenue from the new product line would materialize within the year. Nvidia remains a dominant player in the AI chip market, with shares surging 154% year-to-date and pushing the company’s valuation over $3 trillion at its peak.
Huang’s personal fortune has largely been tied to Nvidia’s stock performance. In June 2023, he officially joined the ranks of the world’s centibillionaires. Back in 2018, his shares in Nvidia were worth just $3 billion. Huang’s strategic move of buying additional stock when prices were low during the AI revolution has paid off, cementing his role as one of the tech industry’s most influential figures.
Founded by Huang in 1993, Nvidia originally focused on graphics chips for 3D gaming. In recent years, the company has expanded into new areas such as the metaverse and cryptocurrency mining, further driving its growth and global prominence.
