Jensen Huang, has been a tech billionaire since 2017, but it hasn’t been until recent months that he’s seen his wealth grow to astronomical heights – rivalling fortunes of Michael Dell, Mukesh Ambani and Warren Buffet.
The founder and CEO of chipmaking giant Nvidia currently holds the position of the 13th richest individual globally, boasting a net worth of $111 billion, according to recent estimates by Bloomberg.
His net worth has nearly tripled since January, when it stood at $42.3 billion. This represents a gain of over $68 billion in just six months and more than a 2,000 percent increase over the past five years.
This remarkable growth is linked to the performance of Nvidia. Founded in 1993, Nvidia manufactures high-performing graphic processing units (GPUs) that now dominate the global market for in-demand AI chips.
Recent estimates value Nvidia at $3.1 trillion, where Huang owns a 3.5 percent stake. His company has been dubbed by Goldman Sachs as “the most important stock on planet Earth”, given its influence on equity gains this year. Earlier this month the company’s stock rose to $135.58 lifting its market capitalisation to $3.335 trillion. This valuation surpassed both Microsoft and Apple as the most valuable company in the world – a title which it has since lost.
Demand for Nvidia’s GPUs suggests continued growth for Huang’s fortune
Today, Nvidia’s GPUs have proven ideally suited for the demands of complex AI algorithms and machine learning. The company’s chips are now the gold standard and a key component in generative AI, powering everything from self-driving cars, advanced robotics to medical imaging and drug discovery.
While AI technology is still in its early stages of development, this matters little for Jensen Huang’s net worth and company.
Whether an AI programme displays advanced capabilities like ChatGPT, outperforming humans in financial analysis, or exhibits more unconventional behaviour like Google’s Gemini, instructing users to “glue pizza,” the accuracy and sophistication of the AI’s output are secondary.
For any AI program to operate, the underlying software requires a tremendous amount of processing power. This is where Nvidia excels, and where Huang reaps the rewards.
The chipmaker holds about 88 percent of the GPU market, according to John Peddie Research. Some analysts predict continued growth for Nvidia as industries increasingly integrate AI into their operations.
According to McKinsey, the company’s focus on high-performance computing positions it to capitalise on the expanding AI market, which is projected to add trillions of dollars in value to the global economy over the next decade.
Further bolstering this optimistic outlook, GPU manufacturer recently launched Blackwell, a more powerful AI chip.
“We will see a lot of Blackwell revenue this year,” stated Huang on X, anticipating the chip to be operational in data centres by late this year.
Nvidia’s recent success and profits have soared past analyst expectations, adding a large fortune for Huang. However, there are still challenges that remain. Competition in the AI chip market is intensifying, with companies such as Google and Amazon developing their own specialised processors.
This increased competition have some experts to believe that Nvidia’s dominance may be unsustainable. In February, Barclays fixed income analyst Sandeep Gupta highlighted concerns over Nvidia’s future prospects, stating that Nvidia’s large market share would be hard to maintain and questioned how Nvidia’s customers would monetise AI software.
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