On June 18, 2024, Nvidia’s shares climbed 3.5% to $135.58, propelling its market capitalization to an unprecedented $3.335 trillion, surpassing Microsoft as the world’s most valuable company. This milestone was driven by the company’s dominance in the AI chip market, controlling approximately 80% of the AI chips used in data centers.
Nvidia’s meteoric rise can be attributed to its cutting-edge graphics processing units (GPUs), which have become indispensable for training AI algorithms and powering innovative applications like image generators and chatbots. The company currently dominates approximately 70% of the market for AI chips, granting it significant influence in the industry and attracting regulatory scrutiny. In the mid-2010s, AI researchers began experimenting with Nvidia’s GPUs, recognizing their unique suitability for handling the massive computations required for AI tasks. Nvidia capitalized on this trend by refining its software to enhance compatibility with AI workloads, positioning itself as the industry leader when the AI boom arrived. Competitors like AMD and Intel have struggled to keep pace, with analysts predicting Nvidia’s competitive edge will persist for years.
Nvidia’s unprecedented growth has been fueled by the insatiable demand for its chips from tech giants like Microsoft, Meta, and Google, who are racing to expand their AI computing capabilities. The company’s data center business, which generates approximately 86% of its total sales, reported a staggering revenue of $22.6 billion in the most recent quarter. This surge can be attributed to the burgeoning field of generative AI, which has prompted companies to acquire Nvidia’s processors to build AI models and manage expanding workloads. With investors recognizing Nvidia’s technology as the driving force behind the AI revolution, the company’s shares have experienced a remarkable nine-fold increase since the end of 2022.
Nvidia’s co-founder and CEO, Jensen Huang, has seen his personal fortune skyrocket alongside the company’s meteoric rise. His net worth now exceeds a staggering $117 billion, catapulting him into the ranks of the world’s wealthiest individuals. This astronomical wealth can be directly attributed to the unprecedented demand for Nvidia’s AI chips, which have propelled the company’s valuation to unprecedented heights.
Over the past five years, Jensen Huang’s net worth has experienced phenomenal growth. Starting from around $4 billion in 2019, his wealth has surged to over $117 billion by 2024. This dramatic increase is closely linked to Nvidia’s stock performance and the escalating demand for AI technology.
Jensen Huang’s net worth of over $117 billion places him among the richest tech CEOs globally. Compared to other tech leaders:
In summary, Jensen Huang’s remarkable rise in net worth underscores the transformative impact of Nvidia’s advancements in AI technology and its dominant position in the market.
