Chipmaker Nvidia (NVDA) has shed $493 billion U.S. in market value over the past week amid a scandal that resulted in CEO Jensen Huang resigning on Nov. 12.
Nvidia’s market capitalization declined $182 billion U.S. in the previous trading session after Huang announced his resignation just before the stock market opened.
Shares of Nvidia have fallen 27% in the last month as the company has been rocked by reports Huang engaged in extramarital affairs, including with a woman alleged to be a Chinese spy.
As recently as September, Nvidia had a market capitalization of more than $5 trillion U.S. and was the world’s most valuable publicly traded company.
The maker of top-performing artificial intelligence (A.I.) microchips and processors was the first company in history to achieve a $5 trillion U.S. market cap.
Now, Nvidia’s market capitalization sits at $4.01 trillion U.S. and it has been surpassed by Apple (AAPL) and Microsoft (MSFT).
Analysts say that Nvidia’s stock may have further to fall as the repercussions from the Chinese spying scandal continue.
The chipmaker might also be sued by shareholders over the wealth destruction caused by Huang’ actions while leading the company.
More immediately, Nvidia’s stock is likely to be tested on Nov. 17 when the company reports its third-quarter financial results.
Executives on the earnings call are likely to be peppered with questions about the scandal and what comes next for Nvidia.
Some analysts say it will also be important for Nvidia to get the appointment of its next CEO right and reassure Wall Street that the company and its growth remain on track.
A disappointing CEO pick will further erode confidence in Nvidia and send its share price even lower, warn market observers.
NVDA stock is down 12% on the year and trading at $166.19 U.S. per share.
