Nvidia CEO Jensen Huang saw his net worth soar by $4.8 billion on Wednesday, thanks to a 4.29% rise in the company’s stock price.
Nvidia (NVDA), the world’s leading maker of graphics processing units (GPUs), rallied despite concerns about increasing competition in the AI chip market.
Huang’s wealth now stands at $118.7 billion, making him the 11th richest person globally, according to Forbes.
The stock closed at $135.74 per share on Wednesday, gaining $5.35 in a single day as Wall Street analysts reiterated their bullish stance on the company.
Nvidia has faced pressure as major tech firms, including Google (GOOG), Meta (META), Microsoft (MSFT), and Amazon (AMZN), develop their own custom chips to reduce reliance on Nvidia’s GPUs. Broadcom (AVGO), another chipmaking giant, recently announced partnerships with OpenAI and Apple (AAPL), sending its stock higher while Nvidia shares dipped earlier this month.
Despite these challenges, Nvidia’s position in the AI chip market remains unmatched. The company’s GPUs, which first gained prominence in computer gaming, now dominate the AI and data center markets, helping Nvidia achieve a market capitalization exceeding $3 trillion in 2024.
What to know
Nvidia’s rapid ascent has not come without complications. Last week, Chinese regulators launched an antitrust investigation into the company, potentially signaling retaliation against U.S. sanctions on Chinese tech firms. The State Administration for Market Regulation is examining whether Nvidia violated China’s antimonopoly laws.
The investigation also includes a review of Nvidia’s $6.9 billion acquisition of Mellanox Technologies, an Israeli-American networking firm. Chinese regulators had approved the deal in 2020 under strict conditions, including assurances that Nvidia would not discriminate against Chinese suppliers.
Despite its market leadership, Nvidia faces increasing competition from tech giants developing custom chips, including Google (GOOG), Meta (META), Microsoft (MSFT), and Amazon (AMZN). Broadcom (AVGO) has also emerged as a contender, announcing partnerships with OpenAI and Apple (AAPL). This competitive landscape has led to fluctuations in Nvidia’s stock, which is down 12% from its November peak.
More insight
Huang, who co-founded Nvidia in 1993 and has served as its CEO ever since, owns approximately 3% of the company. Born in Taiwan, Huang moved to the United States as a child during a period of political unrest in his home country.
- His leadership has transformed Nvidia from a niche graphics card maker to a global leader in AI and computing technologies.
- Beyond Nvidia, Huang is known for his philanthropy. He donated $30 million to Stanford University for an engineering center and gifted $50 million to Oregon State University in 2022 to establish a namesake research center.
Huang’s extraordinary wealth reflects Nvidia’s meteoric rise in the tech industry. As AI adoption accelerates across industries, analysts predict further growth for Nvidia, reinforcing Huang’s status as one of the tech world’s most influential figures.