Nvidia CEO Jensen Huang has seen his wealth significantly increase recently. According to Forbes ‘ real-time billionaire list, his net worth rose by more than $4 billion, making him the 11th wealthiest person in the world.
Nvidia’s success in leveraging artificial intelligence (AI) has propelled the company to become the most valuable publicly traded company. On June 18, Nvidia’s stock saw a more than 3% increase, further boosting Jensen Huang’s net worth to approximately $119 billion, marking his highest position on the billionaire list.
Jensen Huang’s Journey
Jensen Huang has been at the helm of Nvidia since co-founding the company in 1993, serving as its chief executive and president. Nvidia’s journey includes its initial public offering in 1999 and a subsequent surge in trading activity, particularly in recent years. The company has cemented its position as a leader in providing chips essential for powering artificial intelligence software, an industry where demand has skyrocketed.
Recently, Nvidia achieved a significant milestone by surpassing the market capitalizations of tech giants Microsoft and Apple, underscoring its pivotal role in technology. To manage its stock price dynamics, Nvidia executed a stock split, effectively reducing its share price from over $1,200 to below $130. This strategic move aims to make its shares more accessible to a broader range of investors without diluting their value. As Nvidia continues to innovate and expand its influence in AI and other technologies, its strategic decisions, like the stock split, reflect its proactive approach to sustaining growth and market leadership.
Nvidia and Jensen Huang’s Wealth Growth
- Wealth Surge: Jensen Huang, who initially owned a 3% stake in Nvidia, saw his net worth soar. By early 2024, Forbes estimated it at $77 billion. Thanks to Nvidia’s market cap skyrocketing by 177% to $3.33 trillion, his net worth climbed to $119 billion. He plans to sell 600,000 shares by March 2025, highlighting his strategy to capitalize on Nvidia’s success.
- Wealth Transformation: Jensen Huang’s journey has been staggering. In 2019, he was the 546th richest person with a net worth of $21 billion. Within five years, his wealth surged by $114 billion, positioning him near the top of the global billionaire rankings, surpassing Mukesh Ambani and nearing Steve Ballmer on Forbes’ list.
- Market Cap Spike: Since the beginning of the year, Nvidia’s market capitalization has surged by 177%. This increase comes as shares initially adjusted for a stock split traded at $48.17.
- Forbes Valuation: Forbes estimates Jensen Huang’s net worth at $118.8 billion, marking him the 11th richest person globally. This is Jensen Huang’s highest ranking on Forbes’ real-time billionaires list.
Nvidia’s Role in the AI Craze and Market Dominance
Nvidia’s chips and graphics processing units (GPUs) have become increasingly valuable in the artificial intelligence (AI) sector. Companies like Microsoft, Meta, Amazon, and Alphabet highly value Nvidia’s technology.
- Key Partnerships and Market Share: Microsoft accounts for approximately 15% of Nvidia’s revenue, highlighting significant partnerships. According to CNBC, citing Mizuho Securities, Nvidia also dominates the AI chip market, controlling between 70% and 95% of it.
- Financial Strength: Nvidia reported a substantial $8.4 billion net income for its 2023 fiscal year. Analysts predict that Nvidia’s net income will exceed Apple’s in just four years, indicating strong growth and market confidence in the company’s future prospects.
Also Read:
Fitch Raises India’s Growth Estimate to 7.2%
Gemini Mobile App Launched in India with Support for 9 Nine Local Languages
Zomato, Paytm Confirm Talks are on for Movies & Events Business Deal
