- Nvidia CEO’s net worth soared by $4.8 billion in one day
- The increase is due to a 4.29 per cent increase in Nvidia’s stock price
- Jensen Huang is now worth $118.7 billion, making him the 11th richest person in the world
The net worth of Jensen Huang, the Chief Executive Officer of Nvidia, soared by $4.8 billion on Wednesday, December 18, due to a 4.29 per cent increase in the company’s stock price.
With the increase, Huang is the 11th richest person in the world, according to Forbes, and now worth $118.7 billion.
Nvidia’s stocks have rallied despite concerns about increasing competition in the Artificial Intelligence (AI) chip market, leading to a 12 per cent decline in the company’s stocks from its November peak. The stock closed at $135.74 per share on Wednesday, gaining $5.35 in a single day.
Nvidia has remained the world’s leading maker of Graphics Processing Units (GPUs) but faces stiff competition from Google, Meta, Microsoft, and Amazon. Broadcom has also become a competitor and announced partnerships with OpenAI and Apple.
The three-trillion-dollar valuation race
The trio of Nvidia, Apple, and Microsoft has been neck-to-neck in the race to become the highest three-trillion-dollar-worth company.
Nvidia, however, has been the US stock market’s biggest winner among the trio and other heavyweights aiming to build out their AI computing capacity and dominate the emerging technology.
The chipmaker has been on a streak this year as its stock is said to have exceeded the combined value of Eli Lilly, Walmart, JPMorgan, Visa, United Health Group, and Netflix.
Nvidia has recorded successes
Following Donald Trump’s election victory in November, the shares of Nvidia, which recently surpassed Apple to become the world’s most valuable company at $3.53 trillion, reached a record high of $3.6 trillion on Thursday, November 7.
Nvidia’s shares rose to 2.2 per cent, driven by broad investor optimism about tax cuts and lower regulations after Trump’s election victory.
At the stock market, Nvidia’s stock value ended the day at $3.65 trillion, which is $8 billion higher than Apple’s record closing market capitalisation of $3.57 trillion reached on October 21, before the chipmaker overtook the iPhone maker as the world’s most valuable company on Tuesday, according to LSEG data.
On June 18, 2024, Nvidia reached $3.334 trillion and briefly became the most valuable company in the S&P 500 before Microsoft and Apple overtook it. The chipmaker only crossed the $1 trillion mark in 2023.
The company’s investment in chips or semiconductors used to power many AI applications has boosted its revenue.
In the fourth quarter of 2023, Nvidia recorded $22.1 billion in revenue, which was $1.7 billion of projected revenue.
For the year ended March 31, 2024, Nvidia’s revenue reached $60.9 billion, which is a 126 per cent growth from the figures recorded in the previous year.
Nvidia also recorded a 681 per cent growth in its operating income to $33 billion, which represents an operating margin of 54.2 per cent.
The company’s financial performance in the fiscal year was driven by a 217 per cent growth in its data centre revenue. It also recorded $47.5 billion from the sales of GPUs and InfiniBand used in data centres.
Meet Jensen Huang, CEO of Nvidia, the world’s most valuable company
Meanwhile, TheRadar reported that Nvidia recently surpassed Apple as the world’s most valuable company and currently leads the world’s three trillion-dollar-worth companies, including Apple, Microsoft, and Amazon.
Behind the strides recorded by Nvidia is 61-year-old, Jensen Huang, who founded the company in 1993 and has served as its president, Chief Executive Officer, and a member of the board of directors since inception.
