Five years ago, NVIDIA CEO Jensen Huang owned about $3 billion price of shares in his chipmaker. After Thursday's rally that drove the stock to a record high, his stock holdings now total greater than $90 billion.
Nvidia announced its first-quarter results late Wednesday that beat estimates, saying revenue rose greater than 200% for the third consecutive quarter, driven by demand for artificial intelligence processors.
Huang also gave a better-than-expected forecast, telling investors that the corporate sees insatiable demand for its AI graphics processing units (GPUs). The company signaled to its customers, especially the massive cloud firms, that their investments within the expensive chips could yield a high return.
“We are fundamentally changing how computers work and what computers can do,” Huang said.
Huang owns about 86.76 million Nvidia shares, or greater than 3.5 percent of the corporate's outstanding shares. With the stock rising greater than 9 percent on Thursday to shut at nearly $1,038 per share, the worth of his stake increased by about $7.7 billion.
Nvidia shares have greater than doubled this 12 months after tripling in 2023. They are up 28-fold over the past five years. Huang added to his stake in 2022 when the stock hit a relative low before the AI boom.
Huang, 61, founded the Silicon Valley company in 1993 to construct GPUs for 3D gaming. While gaming has been the corporate's biggest business for a long time, Nvidia has also expanded into other markets, including Cloud Gaming Subscriptionsthe metaverse and cryptocurrency mining chips.
But in late 2022, Nvidia's fortunes took a dramatic turn when OpenAI released ChatGPT, bringing the concept of generative AI to a wider audience. The technology showed a future during which computers cannot only retrieve recent information from databases, but in addition generate recent content and answers to questions from large caches of unsorted data.
OpenAI performs most of its AI development on Nvidia GPUs. Other firms like Microsoft, Google And Meta They increased their investment in AI research and development, but needed the newest AI chips price billions of dollars to construct their models.
Huang is the face of Nvidia and its top sales representative. He has consistently touted the potential and performance of the corporate's GPUs for developing artificial intelligence.
Nvidia, which has been developing AI software and tools for greater than a decade, has put itself in a number one position and develop into the highest supplier to the biggest technology firms. The company now holds about 80% of the AI chip market and Huang is among the many 20 richest people on the earth.
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