Jensen Huang, a $100 billion man as Nvidia closes in on Apple

Top line

Nvidia’s stock rally to another major milestone Tuesday made CEO Jensen Huang a centibillionaire for part of Tuesday afternoon, as the architect of AI technology closes in on Apple to become No. 2 most valuable in the world.

Key facts

Huang, Nvidia’s co-founder and largest individual shareholder with a 3.7% stake, became $6.6 billion richer on Tuesday, and his net worth surpassed $100 billion for the first time, making him one of 16 people in the world with a net worth of more than $100 billion, according to Forbes estimates (Huang’s net worth ended the day just below $100 billion, or $99.9 billion).

Unsurprisingly, the record day for Huang’s fortune came as Nvidia shares soared to an all-time high, surpassing the $1,100 share price for the first time, as shares rose 7% to $1,141. .

Tuesday’s rally added about $190 billion to Nvidia’s market capitalization, which soared to $2.8 billion.

That’s just $108 billion less than Apple’s $2.9 trillion market value and less than $400 billion less than Microsoft’s $3.2 trillion market cap, a stunning transformation. from Nvidia’s valuation of less than $100 billion just five years ago to becoming the leader of Wall Street’s next frontier.

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big number

More than 600 billion dollars. That’s the market cap Nvidia has gained over the past month, mostly since it posted its latest batch of quarterly earnings last Wednesday. That gain, achieved in just three trading sessions, is greater than the market values ​​of all but 11 public companies worldwide, surpassing those of Tesla, JPMorgan Chase and Walmart.

crucial quote

“Every company that wants to do something with AI has to pay for expensive Nvidia GPU chips,” Yardeni Research founder Ed Yardeni wrote in a note to clients on Tuesday, summarizing the lucrative dominance Nvidia enjoys in the space. rapidly growing graphics processing unit (GPU) technology. . Nvidia designs a report on the GPU semiconductor chips needed to power AI.

Key background

Headquartered in Santa Clara, Nvidia is the quintessential Silicon Valley company, tracing its origins to a conversation at a Denny’s restaurant in 1993, keeping its founding CEO, Huang, perhaps best known publicly for his patented black leather jacket, at the helm during its 31 years of existence. Huang remains $105 billion poorer than the world’s richest person, Bernard Arnault, and $100 billion poorer than the richest person in the United States, Jeff Bezos. Nvidia’s market value, fame, and financial performance have grown exponentially over the past two years as public interest in AI has increased. Nvidia’s earnings of $15 billion during its first full quarter of 2024 were roughly 40 times larger than its net income during the comparable period of 2019 and even seven times larger than comparable earnings last year.

Other readings

ForbesThe $100 billion club: these 14 people have 12-figure fortunes
ForbesNvidia Earnings: Stock Rebounds as AI Giant Reports 600% Earnings Explosion and 10-for-1 Stock Split