Nvidia CEO Jensen Huang's wealth surged over $4 billion as Nvidia became the world's most valuable company due to AI demand.
Jensen Huang, the CEO of Nvidia, has risen to the 11th spot on Forbes' real-time billionaire list as his net worth surged by more than $4 billion. This increase came after Nvidia's shares jumped over 3% on June 18, pushing Huang's estimated net worth to around $119 billion. He now sits just behind former Microsoft CEO Steve Ballmer in Forbes' rankings.
Nvidia's remarkable climb in valuation has made it the world's most valuable public company, driven largely by the soaring demand for artificial intelligence technology. Huang, who owns a 3% stake in Nvidia, has seen his wealth skyrocket. At the beginning of 2024, Forbes pegged his net worth at $77 billion. Since then, Nvidia's market capitalization has surged by a staggering 177%, reaching an astounding $3.33 trillion.
In 2019, Jensen Huang was ranked 546th on Forbes' list of the world's wealthiest individuals. Today, Nvidia's dominance in AI-related chip technology has propelled its stock price up more than 170% this year alone, following a massive 1,100% increase since its low in October 2022, as reported by Reuters.
The company's blockbuster earnings and widespread investor optimism about AI's future role in the global economy have fueled Nvidia's meteoric rise. It took just 96 days for Nvidia's market value to leap from $2 trillion to $3 trillion, underscoring the fervor surrounding its products.
Nvidia's financial performance has been outstanding, with revenue tripling to $26 billion in the latest quarter and net income increasing seven-fold to $14.9 billion. Forecasters predict that revenue would almost double to $120 billion in this fiscal year and then increase by 33% to $160 billion in fiscal 2026.
Despite its soaring stock price, Nvidia's valuation metrics like the forward price-to-earnings ratio have moderated slightly, standing at 43 compared to levels seen in previous years. This is a reflection of the company's robust earnings growth and investors' optimism about its future.
While Nvidia stands out as a leader in AI technology, other tech companies like Super Micro Computer and Arm Holdings have also benefited from investor enthusiasm about the potential profitability of AI-related innovations.
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