The world's nine wealthiest tech tycoons saw more than $150 billion wiped from their combined fortunes on Thursday, amid a sell-off in AI and chip stocks; the Nasdaq plunged into correction territory. Elon Musk lost roughly $80 billion, the largest single-day decline, amid an 11 per cent drop in Tesla shares and a 9 per cent fall in SpaceX stock.
Investors dumped tech stocks on expectations that Democrats, after winning control of the House and Senate in this week's US midterm elections, would rein in AI and data-centre spending. The Nasdaq fell more than 5 per cent.
Michael Dell's net worth fell by about $19 billion, to $190 billion, as Dell Technologies stock dropped 15 per cent. Nvidia's Jensen Huang lost around $15 billion, his fortune shrinking to $151 billion as the chipmaker's shares slid 9 per cent. Oracle's Larry Ellison saw his wealth decline by $10 billion, to $158 billion, after a 7 per cent drop in Oracle stock.
Meta's Mark Zuckerberg lost about $8 billion, trimming his net worth to $215 billion. Former Microsoft CEO Steve Ballmer took a hit of roughly $6 billion, his wealth falling to $188 billion as Microsoft stock slipped about 4 per cent. Alphabet co-founders Larry Page and Sergey Brin, along with Amazon founder Jeff Bezos, saw declines of less than 2 per cent or below $5 billion each, as Alphabet and Amazon shares retreated by a little over 2 per cent.
Despite the rout, all nine men remained among the 15 richest people on Earth at Thursday's market close. Over the past 12 months, Musk was still up $312 billion, Bezos up $100 billion, Dell up $31 billion and Ballmer up $13 billion. Ellison's net worth was down $152 billion or 49 per cent, and Huang was down about $19 billion or 11 per cent. Zuckerberg was also in the red for the year, while Page and Brin were up less than 1 per cent.
Several tech bosses stood to recoup some losses on Friday; as of 6:30 a.m. ET, Nvidia, SpaceX and Oracle shares were higher in premarket trading.
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One-day fall in net worth of tech billionaires, in US$ billion
US$ billion
Approximate as reported. Larry Page, Sergey Brin and Jeff Bezos each lost below $5 billion and are not shown. Source: Business Insider
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Analysis
Why This Matters
The sell-off signals that investors see a Democratic sweep as a threat to the $200 billion-plus AI boom that has powered the bull market.
It shows how concentrated tech wealth is and how quickly markets can move on political expectations; the nine richest tech billionaires lost more than a third of the entire US venture capital industry's annual investment in a day.
The Nasdaq correction may ripple through pension funds, 401(k)s and index-fund holdings of ordinary investors, not just the ultra-wealthy.
Background
The nine tech leaders listed have dominated the 12-month AI-stock surge that made several of them hundreds of billions richer. Thursday's sell-off was the worst day for the sector this year. The sell-off was triggered by this week's midterm elections, in which Democrats won control of both chambers of Congress, raising the prospect of tighter regulation of rapidly expanding data-centre infrastructure.
Key Perspectives
Elon Musk: Lost about $80 billion as Tesla stock fell 11 per cent and SpaceX shares dropped 9 per cent, the biggest single-day wealth decline reported for any individual.
Michael Dell: His net worth fell by about $19 billion after Dell Technologies stock plunged 15 per cent.
Jensen Huang: Saw his fortune shrink by about $15 billion as Nvidia's stock slid 9 per cent.
Larry Ellison: Lost $10 billion after Oracle's stock dropped 7 per cent.
Investors: Dumped AI and chip stocks on expectations Democrats would rein in AI and data-centre spending.
What to Watch
Whether Nvidia, SpaceX and Oracle premarket gains hold and expand in regular trading on Friday.
Whether the sell-off in AI stocks continues next week or reverses as investors reassess the actual policy risk.
Which pieces of AI or data-centre legislation the new Democratic Congress advances first, and their likely effect on capital expenditure plans by the big tech companies.
12 claims in this story checked against 1 source: 12 supported.
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SupportedThe world's nine wealthiest tech tycoons lost more than $150 billion combined on Thursday.All Content from Business Insider: “The world's nine wealthiest tech titans saw just over $150 billion wiped from their combined fortunes in a single day”
SupportedElon Musk lost about $80 billion.All Content from Business Insider: “The richest man on the planet saw his wealth shrink by about $80 billion”
SupportedMusk had the largest single-day loss among the nine tech tycoons.All Content from Business Insider: “Elon Musk took the biggest hit to his net worth”
SupportedInvestors sold tech stocks in anticipation that Democrats would rein in AI and data-centre spending after winning control of the House and Senate in the midterm elections.All Content from Business Insider: “Investors sold off tech stocks in anticipation of Democrats reining in AI and data-center spending after winning control of the House and Senate in the US midterm elections this week.”
SupportedMichael Dell's net worth fell by about $19 billion to $190 billion as Dell Technologies stock dropped 15 per cent.All Content from Business Insider: “Michael Dell's net worth fell by over 9% as well, dropping by about $19 billion to settle at $190 billion, as Dell Technologies stock plummeted 15%.”
SupportedJensen Huang's fortune fell by around $15 billion to $151 billion as Nvidia shares slid 9 per cent.All Content from Business Insider: “Nvidia's Jensen Huang saw his fortune shrink by 9% or around $15 billion, to $151 billion, as the AI chipmaker's stock slid 9%.”
SupportedLarry Ellison's wealth fell by $10 billion to $158 billion after Oracle stock dropped 7 per cent.All Content from Business Insider: “Oracle's Larry Ellison took a 6% hit to his net worth, which fell by $10 billion to $158 billion. That was fueled by a 7% drop in Oracle stock.”
SupportedAll nine men remained among the 15 richest people on Earth at Thursday's market close.All Content from Business Insider: “they all ranked among the 15 richest people on Earth at Thursday's market close”
