Billionaire Nvidia CEO Huang Loses $8 Billion on Company News

Technology

Published: January 8, 2025 8:15 am

AI chip and service company Nvidia Corp. (NASDAQ: NVDA) suffered a stock sell-off after announcing several new initiatives. This took the net worth of CEO Jensen Huang down by $7.8 billion to about $119 billion, making him the 12th richest man in the world.

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Nvidia Corp. (NASDAQ: NVDA) suffered a stock sell-off after announcing several new initiatives.
This took the net worth of CEO Jensen Huang down by $7.8 billion.
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Nvidia’s shares fell over 6% to $140 apiece, lowering its market cap to $3.43 trillion. It remains in second place to Apple Inc. (NASDAQ: AAPL). Apple’s market cap is $3.66 trillion. Huang owns 3.5% of the company he helped found in 1993.

The share sell-off occurred despite a series of announcements about Nvidia’s future.

Where Nvidia Is Headed

Nvidia will substantially increase the size of its business footprint. It will emphasize its old gaming products and move into the AI automotive business and robotics. Perhaps most importantly, it will put new AI products into personal computers, which could expand extremely wide access to industry-leading technology.

Huang made his announcements at the annual CES meeting, which may be the world’s largest gathering of the tech industry. According to The Wall Street Journal, he put the eventual revenue from robotics at $38 billion and the AI car business at $5 billion.

As a side note, it raises the question of whether it will compete with AI software that will power the next generations of Tesla Inc. (NASDAQ: TSLA) vehicles. That could turn an important client into a competitor as Elon Musk’s company chases fully autonomous vehicles. The new Nvidia car partnership will include Toyota, among other manufacturers.

Perhaps the most shocking comment was that Nvidia would launch a new “personal AI supercomputer” based on its flagship, Blackwell. These might be used without connection to the cloud. The Financial Times reports that these will be available in May at a $3,000 price point.

It is only a guess about how much Nvidia will compete with other tech companies outside of self-driving features. Its new products could also hurt some of these customers. However, there is no other place in town to get Nvidia-like chips, so those with objections have nowhere to go.

Nvidia Price Prediction and Forecast