Huang is one of the main beneficiaries of this boom, as he has already managed to grow his fortune from $8 billion to $90 billion in just five years. The rise of his assets is almost as interesting as that of the company he leads, as it has positioned itself as one of the most relevant companies in the last two years, especially due to the boom in artificial intelligence.
“The next industrial revolution has begun: companies and countries are collaborating with Nvidia to transform traditional trillion-dollar data centers into accelerated computing centers and build a new type of data center: artificial intelligence factories , to produce a new commodity: artificial intelligence,” said Jensen Huang, in its latest quarterly report.
In its fiscal 2024, Nvidia’s revenue from its Graphics business segment amounted to about $13.5 billion, while revenue from its Computing and Networking segment amounted to $47.4 billion.
The majority of Huang’s net worth comes from his 3.5% stake in Nvidia, the company he co-founded in 1993 and has run since. In addition, he is by far the largest individual shareholder in the company, as he surpassed Indian tycoon Gautam Adani and became the seventeenth richest person in the world, according to a CNBC report.
Nvidia’s competitors in the GPU market include both direct and integrated graphics vendors, with notable examples including Advanced Micro Devices (AMD) and Intel. Nvidia also faces competition from companies designing other accelerated computing solutions, particularly the growing number of startups specializing in AI chips, as well as larger technology companies such as Alphabet, Google’s parent company, seeking to innovate in the AI chip space through the development of its Tensor Processing Unit (TPU).
More money for other employees too
The company announced a direct ten-for-one stock split of Nvidia’s issued common stock to make stock ownership more accessible to employees and investors.
The split will be effected by an amendment to the Restated Certificate of Incorporation, which will result in a proportionate increase in the number of authorized shares of common stock.
Each holder of record of common stock as of the close of market on Thursday, June 6, 2024 will receive nine additional shares of common stock, which will be distributed after the close of market on Friday, June 7, 2024. Trading is expected to commence on a adjusted by the division at market open on Monday, June 10, 2024.
The company is also increasing its quarterly cash dividend by 150%, from $0.04 per share to $0.10 per common share. The increased dividend is equivalent to $0.01 per share on a split-adjusted basis and will be paid on Friday, June 28, 2024 to all shareholders of record on Tuesday, June 11, 2024.
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