On Tuesday, Nvidia fell nearly 5% in early trading, hitting a low of $170.26 and down more than 30% from its all-time high set on October 6. The company's market capitalization has evaporated by nearly $400 billion over the past two days.
On the news front, after Jensen Huang's extramarital affair scandal came to light, Nvidia's board of directors launched an independent investigation on November 8 local time into allegations related to Huang's personal matters. After the U.S. market close on November 9 local time, Nvidia and Jensen Huang were hit with a shareholder class action lawsuit alleging fraud against shareholders.
Analysts believe that once Jensen Huang departs, Nvidia will face a huge succession challenge. Huang, 63, is the core pillar of Nvidia. According to FactSet, a financial data provider, Huang is Nvidia's fifth-largest shareholder, holding about 3.58% of the company. Analysts note that the company currently has no mature succession plan, and if Huang were to leave, it would be a large-scale leadership transition for which the company is not prepared.
