Nvidia Drop Erases $450 Billion in Value and Slices Jensen Huang's Fortune

A sharp decline in Nvidia shares stripped approximately $450 billion from the company's market capitalization on Nov. 5, reducing its total valuation to $4.39 trillion and knocking Chief Executive Jensen Huang out of the top 10 on the Bloomberg Billionaires Index.

Shares of the semiconductor company fell $18.53, or 9.26%, to finish the session at $181.60, marking its steepest single-day percentage drop since January 2025, according to reporting published by Yahoo Finance (https://247wallst.com/investing/2026/11/06/jensen-huang-out-of-the-worlds-10-richest-people-as-ai-selloff-hits-wall-street/?.tsrc=rss). Huang, who controls roughly 3.4% of Nvidia across personal holdings and family trusts as of a September 2026 regulatory filing, absorbed a paper loss of $15.1 billion. The decline dropped his net worth to $150.9 billion, moving him from ninth to 13th place on Bloomberg's index, just below the heirs to the Walmart fortune.

The pullback reverberated across the broader chip and tech landscape following the Nov. 3 U.S. midterm elections. The PHLX Semiconductor Index slid 12.25%, the Nasdaq Composite lost 5.5%, and the S&P 500 declined 4.4%. Market participants pointed to concerns that higher borrowing costs and potential permitting friction could slow the pace of data center construction and moderate spending on artificial intelligence hardware.

Those balance-sheet questions intersect directly with Nvidia's commitments. Management indicated in August that capital expenditures among the top five hyperscalers would approach $800 billion in 2026 and reach $1.3 trillion in 2027. Slower construction timelines could alter the rhythm of equipment deliveries. Nvidia carries $279.00 billion in supply obligations alongside partner guarantees capped at $108.5 billion for AI cloud partners, while customer receivables now average roughly 60 days to collect. While Huang has maintained that company exposure is bounded, widespread delays in facility completions would test both supply contracts and guarantee covenants.

To date, reported operational results show no evidence of a fundamental reversal. Nvidia posted 105.8% revenue growth in its most recent quarter, topping consensus earnings and revenue marks for six straight quarters. For the fiscal third quarter, the company projected revenue of $108.0 billion, plus or minus 2%, excluding China data center operations.

The recent retreat leaves Nvidia shares down 24.09% over the past month and down 2.4% year-to-date, pricing the equity at roughly 37 times trailing earnings. The next critical test for the stock's valuation arrives around Nov. 17, when Nvidia is expected to deliver its quarterly financial results, report against its $108.0 billion guidance target, and address its forward projection of roughly 70% revenue growth for fiscal 2028.