Jensen’s ‘Affair’ Wiped Out $300 Billion In Nvidia Market Value, Top Economist Says, as Market Concentration Is Highest ‘Since 1932’

Economist Justin Wolfers stated that a relationship involving Nvidia Corp.‘s (NASDAQ:NVDA) CEO erased billions of dollars in stock market value. Wolfers attributed this financial impact to corporate concentration, noting that ten companies control 37% of the market, a level unseen “since 1932.”

The $300 Billion Loss

Following reports that Nvidia CEO Jensen Huang engaged in a “single affair” and was targeted by a foreign intelligence effort, the company lost approximately $300 billion in market value compared to broader market trends, according to Wolfers.

Wolfers calculated that this loss translates to nearly $2,000 per household in the U.S. He described the market event as functioning like a stimulus package run in reverse, stating, “It’s as if the government, instead of mailing each of us a $2,000 check, sent them a $2,000 invoice.”

Market Bottlenecks and Succession

Wolfers argued that the economic impact stems from Nvidia’s position as a “bottleneck supplier to the AI buildout.” He criticized the company’s preparedness for leadership disruptions, stating that the current succession plan is a “horoscope” rather than a formal strategy.

Writing on X, Wolfers noted, “That’s an extraordinary amount of wealth that moves from just a single affair.”

Furthermore, Wolfers emphasized that the broader AI economy is controlled by a small group of corporate leaders who could “fit into a minivan.” Because of this market structure, Wolfers warned that one executive’s vulnerabilities can directly impact American wealth.

The ten largest American companies now account for more than 37% of the entire stock market.⁣
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We haven't seen concentration like this since 1932. ⁣
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That's an extraordinary amount of wealth that moves from just a single affair. https://t.co/uT5CMvd6TX

— Justin Wolfers (@JustinWolfers) November 12, 2026

Private Power, Public Consequences

Wolfers highlighted that firms like Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Meta Platforms Inc. (NASDAQ:META) depend heavily on Nvidia’s computing power.

“Nvidia, Starlink, Meta, and X… they’re private companies,” Wolfers stated. “But private just means not owned by the government. It no longer describes the consequences of their choices, which today are very, very public.”

He concluded that the success of these entities is bound to government decisions, raising concerns about unchecked corporate authority in a concentrated market.

How Has NVDA Performed in 2026?

The stock was lower by 10.06% over the last year, down 6.85% year-to-date, and lower by 24.33% over the last month. It closed 2.92% higher at $173.73 per share on Wednesday; the stock was down about 7.50% in premarket trading on Thursday.

Benzinga’s Edge Stock Rankings indicate that NVDA maintains a negative price trend in the short, long, and medium terms, with a good quality score.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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