In the bustling world of technology and innovation, the name Nvidia has been soaring to new heights, epitomized by the remarkable wealth amassed by its CEO, Jensen Huang. As of February 22, 2024, Huang's fortune surged by a staggering $8.5 billion due to a 15% surge in his company's stock prices on the trading floor. According to CNN, Huang now commands a wealth of $68.1 billion, roughly equivalent to Rp 1.064 Trillion.
This wealth catapults him above figures like Charles Koch and rapidly encroaches upon the fortunes of the Walton family, the owners of Walmart. However, Huang still trails behind titans like Elon Musk, Bernard Arnault, or Jeff Bezos in terms of total wealth.
Huang has been at the helm of Nvidia since its inception in 1993, holding a 3% stake in the company. Prior to Nvidia, he worked at chip companies such as LSI Logic and Advanced Micro Devices (AMD) before co-founding Nvidia alongside Chris Malachowsky and Curtis Priem.
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Nvidia has recently reported exceptional revenue growth, fueled by the explosion of artificial intelligence (AI). The company plays a pivotal role in the AI sector, contributing approximately 70% of global semiconductor sales related to AI.
They are unrivaled in producing processors that support artificial intelligence, including generative AI, a new technology capable of creating text, images, and other media.
Huang recently stated that generative AI has now reached a 'critical point'. "Demand is skyrocketing worldwide across various companies, industries, and countries," said Huang as quoted by detikINET from CNN on February 23, 2024.
The company's profit surged by almost $12.3 billion in the last three months, marking a $1.4 billion increase from the same quarter last year, and a 769% year-over-year (yoy) growth, surpassing Wall Street analysts' estimates.
Other chip manufacturers also received positive spillover effects from Nvidia's rise, with AMD's shares rising by 11% and Microsoft's by 2% on February 22, 2024. According to Dan Morgan, Vice President of Synovus Trust Company, Nvidia's growth is evident from its revenue, even as companies like META, Amazon, IMD, and Microsoft begin producing their own chips.
Sales from the company's core data center business grew by 409% year-over-year to reach a record $18.4 billion in the fourth quarter, fueled by partnerships with infrastructure giants like Google, Amazon, and Cisco.
The company's stock price surged by approximately 230% over the past year in 2023, solidifying Nvidia's pivotal role in the broader market. A Goldman Sachs expert even referred to Nvidia as the 'most important stock on planet Earth'.
