|
Getting your Trinity Audio player ready...
|
Edited by: TJVNews.com
Nvidia’s Chief Executive Officer, Jensen Huang, experienced a significant overnight increase in his net worth, soaring by $4.2 billion, following the tech company’s exceptional second-quarter earnings that surpassed Wall Street expectations, as was reported by the New York Post on Thursday. The remarkable performance boosted Nvidia’s revenue to a record $13.51 billion, marking an 88% increase from the previous quarter and an impressive 101% surge from the same period in 2022, the Post report added. This achievement sent Nvidia’s stock soaring by up to 10% in after-hours trading on Wednesday.
The surge in revenue and stock price led to a substantial increase in Huang’s fortune, elevating his net worth from $38 billion to $42 billion. As reported by the Bloomberg Billionaires Index, this places the 60-year-old Taiwanese businessman on track to end the year as one of the world’s top 25 wealthiest individuals, according to the Post report.
Huang’s wealth is largely attributed to his 3.5% stake in Nvidia, with the company’s share price experiencing a remarkable increase of nearly 230% year-to-date. Established in 1993, Nvidia was founded by Huang with the vision of introducing three-dimensional graphics to the gaming and multimedia markets. The Post report said that together with fellow engineers Chris Malachowsky and Curtis Priem, Huang formulated the concept for Nvidia at a Denny’s restaurant in San Jose, California, where he had previously worked part-time.
Huang’s success is reflected in his lifestyle, residing in a $38 million, 9,000-square-foot mansion located in San Francisco’s Pacific Heights, the Post report indicated. The lavish property features a rooftop deck, wine cellar, movie theater, and gym. He shares this luxurious abode with his wife, Lori, whom he met during his undergraduate studies at Oregon State University, and their two children, Spencer and Madison.
Nvidia’s exceptional financial performance was reinforced by its Chief Financial Officer, Colette Kress, during an earnings call with investors. According to the Post report, Kress stated that Nvidia had an “exceptional quarter,” surpassing both Wall Street’s estimates and the company’s own predictions. Notably, Nvidia’s revenue of $13.51 billion exceeded Wall Street’s estimate of $12.6 billion and the company’s initial prediction of $11 billion. The Post also reported that Kress, who also serves as Nvidia’s executive vice president, suggested that Nvidia won’t be slowing down, and told investors to expect $16 billion in revenue at the end of next quarter.
Moreover, Nvidia’s record data center revenue of $10.32 billion, marking a 141% increase from the previous quarter and a remarkable 171% surge from the same period last year, contributed significantly to the company’s success. Additionally, Nvidia’s AI chips, utilized by industry giants such as Amazon, Alibaba, and Microsoft, are in high demand, with analysts estimating a demand-supply gap of at least 50%, as was reported by the Post. This imbalance is expected to persist for several quarters, prompting Nvidia to invest substantially in securing its supply chain.
Daniel Ives, an analyst at Wedbush Securities told the Post that “Nvidia’s results were a “‘drop the mic’ moment in our opinion that will have a ripple impact for the tech space for the rest of the year.”
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Huang said, as was reported by the Post.
Huang’s leadership and Nvidia’s innovative endeavors in artificial intelligence have propelled the company to new heights, solidifying its position as a dominant force in the rapidly evolving tech landscape.
