Along with being wildly lucrative for investors, Nvidia’s (NASDAQ: NVDA) rise has enabled its CEO, Jensen Huang, to grow exceptionally wealthy.
To be precise, Huang holds just over 861 million NVDA shares at press time on October 7, each worth $124.29, meaning his net worth from the ownership alone amounts to about $107 billion.
Such a setup means that Nvidia’s CEO has become worth more than some of the semiconductor giant’s corporate rivals. For example, Intel’s (NASDAQ: INTC) market capitalization fell to $96.59 billion after the chipmaker faced severe headwinds in August.
Could Jensen Huang’s net worth soon be greater than valuation of all Nvidia rivals?
Still, NVDA – and, by extension, Huang – need a significantly greater upside to overtake Nvidia’s biggest rival, Advanced Micro Devices (NASDAQ: AMD).
Indeed, despite not rising nearly as much as Nvidia, AMD shares boast a respectable price of $170.95, and the company’s valuation is substantially above Intel at $276.59 billion.
This means that NVDA stock would have to surge another 158% for Huang’s net worth to be greater than AMD’s valuation. For context, this would entail a Nvidia market capitalization surge to $7.9 trillion – a rise of nearly $5 trillion from the October 7 valuation of $3.064 trillion.
Is Nvidia CEO net worth of $276 billion within reach
While such a rise appears far-fetched at first glance, it may not be entirely out of reach within the ongoing decade.
For example, there was only a 12-year gap between the first $100 billion company – General Electric (NYSE: GE) in 1995 – and the first $1 trillion firm – PetroChina (SHA: 601857) in 2007.
Furthermore, not only is the general trend of acceleration – in 2024, there are 7 $1 trillion corporations, though PetroChina is not one of them – on Nvidia’s side, but so is the chipmaker’s own track record and ambitions for the future.
The semiconductor maker is currently experiencing a renewed uptrend – and uptrend partially driven by what Jensen Huang described as ‘insane’ demand for the Blackwell chip.
Additionally, Nvidia plans to make a Blackwell-like revolution in artificial intelligence (AI) infrastructure each year, per CEO Huang’s statements earlier in October.
If successful, it could lower the costs of companies involved in AI two or three times year-over-year and provide NVDA shares with significant room for growth arising from a reliable annual sales avenue.
Still, Nvidia’s continued growth is far from guaranteed. Apart from the danger that its plans for the future may not go smoothly, the stock is already considered overvalued by many experts, and NVDA shares are very much exposed to the possible bursting of the AI bubble.
NVDA stock price chart
Nonetheless, the fact that Huang is now personally worth more than the entirety of Intel – and his net worth growing above AMD’s valuation is not completely out of reach – stands as a powerful testament to Nvidia’s growth.
The last 12 months alone saw NVDA stock surge 174.49% to be worth $124.29.
Additionally, the company has gained approximately $2 trillion in valuation since the AI boom started in earnest with the release of ChatGPT just two years ago.
Source: https://finbold.com/nvidia-ceo-jensen-huangs-net-worth-is-now-more-than-intel/