Nvidia CEO’s Net Worth Skyrockets Amid AI Boom

Following a 3% rise in Nvidia’s stock on June 18, Huang’s net worth jumped over $4 billion, reaching around $119 billion.  This achievement represents Huang’s highest ranking to date, largely due to Nvidia’s ascent as the most valuable public company globally, driven by the burgeoning artificial intelligence sector. Huang holds a 3% ownership in Nvidia, and at the beginning of 2024, his net worth was estimated at $77 billion. Nvidia’s market capitalization has since surged by 177%, reaching $3.33 trillion.

The demand for Nvidia’s AI chips has propelled this growth, with the company’s shares increasing more than 170% this year and about 1,100% since their October 2022 low. This remarkable rise is attributed to strong earnings and investor enthusiasm for AI. Nvidia’s market value leaped from $2 trillion to $3 trillion in just 96 days. For comparison, Microsoft took 945 days and Apple 1,044 days to achieve the same milestone.

In 2019, Huang was 546th on the list of the world’s richest people. The recent surge in Nvidia’s stock underscores the significant role AI is expected to play in the global economy. Nvidia’s shares rose by 3.5% on Tuesday, elevating its market value to about $3.34 trillion and surpassing both Microsoft and Apple, which had been vying for the top spot.

Historically, only 11 U.S. companies since 1925 have reached the peak of market value on a closing basis. Companies like Microsoft and Exxon Mobil have previously held the top spot, experiencing varied fortunes. For example, Microsoft struggled after the dot-com bubble burst but later regained its footing, while Exxon faced a decline with falling oil prices.

Nvidia’s current earnings back its stock price, with revenue tripling to $26 billion in the latest quarter and net income rising seven-fold to $14.9 billion. Revenue for the current fiscal year is projected to double to $120 billion, with an additional 33% increase to $160 billion expected in fiscal 2026, according to LSEG data.

Despite the surge in share price, Nvidia’s stock valuation has moderated. Its forward price-to-earnings ratio recently stood at 43, which is higher than the 25 level at the start of the year but below the peaks seen last year. The S&P 500 trades at 21 times earnings in comparison.

While Nvidia leads the pack, other tech stocks like Super Micro Computer and Arm Holdings have also benefited from the AI boom, reflecting broader investor excitement about the potential profitability of AI.

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