Jensen Huang, founder and perennial leader of Nvidia, has surged to the 17th spot on the Forbes list of the world’s wealthiest individuals. The almost 10% soar in Nvidia’s share price yesterday has boosted Huang’s worth by approximately $8 billion, bringing his net worth to an impressive $91 billion. Just over a year ago, this value did not exceed $13.5 billion.
A Stunning Rise In Nvidia Stock Value
It is unsurprising that the dramatic increase in Nvidia’s stock price is the reason behind Huang’s wealth surge. The company’s shares have shot up by 115% since the beginning of this year, spurred by investors’ interest in artificial intelligence. Over the past few years, the company has firmly established its dominance in the accelerator market, controlling more than 90% of the segment and garnering about 90% of its total revenues from this market. Over the last five years, Nvidia’s stocks have jumped by 2500%, and over the decade — by 21,500%.
The Impact of Huang’s Shareholding
Huang’s wealth predominantly comes from his Nvidia’s shareholdings. According to Forbes, he owns approximately 3.5 of the company’s stocks. This massive chunk of ownership allows him to anticipate a whopping $8.7 million in dividends in the coming month. Also, his compensation package as CEO increased by 60% last year to $34.2 million. Cash-wise, Huang did not receive much last fiscal year — only $4 million. However, since he primarily gets paid in stocks, the market prices and the stocks’ performance trajectory enable him to make decent earnings from their increase. For comparison, at the beginning of the previous year, Forbes valued the Nvidia leader’s fortune at $13.5 billion, and in 2020 it was a mere $4.7 billion.
This post was last modified on 05/24/2024