Nvidia CEO loses $10B as stock drops sharply

On Tuesday, Nvidia's stock experienced a significant decline of nearly 10%, resulting in a loss of approximately $10 billion in net worth for CEO Jensen Huang. This drop followed a global selloff and marked the largest one-day loss in Nvidia's history, which also led to a reduction of nearly $280 billion in the company's market capitalization. As of that day, Nvidia's market cap stood at $2.6 trillion, trailing behind tech giants Apple and Microsoft. The decline in stock value was exacerbated by reports that the Justice Department had issued a subpoena to Nvidia as part of an investigation into potential antitrust violations. Allegations suggest that Nvidia may have engaged in practices that penalized customers for not exclusively purchasing their chips, raising concerns about monopolistic behavior. This scrutiny comes amid increasing regulatory attention on major tech companies. Nvidia has seen a surge in demand for its products, particularly following the rise of generative AI applications like ChatGPT. However, the company's business practices have drawn the ire of regulators in both the United States and Europe, who are investigating its market dominance and the implications of its CUDA chip programming software, which is essential for compatibility with its GPUs. As the investigation unfolds, Nvidia's position in the market remains precarious, with potential ramifications for its business operations and stock performance. The ongoing scrutiny from government regulators highlights the challenges faced by tech companies in maintaining competitive practices while navigating complex legal landscapes.