Nvidia CEO Jensen Huang just added $7 billion to his net worth after AI frenzy drives the chipmaker's stock to its biggest 1-day market value gain in history
Nvidia CEO Jensen Huang added $7 billion to his net worth on Thursday after the chipmaker's stock soared.
Shares jumped as much as 29%, adding more than $200 billion in market cap, in their biggest one-day gain in history.
Huang co-founded Nvidia in 1993 and owns 3.5% of the company, according to a recent proxy filing.
Nvidia CEO Jensen Huang is a lot richer today than he was yesterday after shares of the chipmaker he co-founded in 1993 soared in their biggest one-day gain in market cap on record.
Nvidia stock soared as much as 29%, adding more than $200 billion to its valuation, after the company reported a blockbuster earnings report that showed the hype in generative artificial intelligence is translating into big revenue gains for the company.
Huang's direct ownership of 86.9 million Nvidia shares, or about 3.5% of the company, means Thursday's massive rally added about $6.8 billion to his net worth. Huang's ownership stake was listed in Nvidia's 2023 annual report.
Huang's total net worth is set to top $34 billion, and his year-to-date gain is pegged at about $20 billion when including Thursday's surge, according to data from Bloomberg.
Nvidia, which makes a key chipset that helps drive the power-hungry technology behind OpenAI's ChatGPT and Alphabet's Bard chatbot, increased its second-quarter revenue guidance to $11 billion, which was more than 50% above Wall Street estimates of just $7 billion.
"In 22 years of covering tech stocks and large cap we have NEVER seen a guidance range of this magnitude on a large cap tech name and thus speaks to our thesis that the monetization of AI... is well underway," Wedbush analyst Dan Ives said in a Thursday note.
Huang isn't the only billionaire to see big wealth gains this year due to the ongoing AI frenzy, with Alphabet co-founders Sergey Brin and Larry Page adding $25 billion and $27 billion, respectively, to their net worth this year amid a rally in Google's stock thanks in part to its own AI plans.
Huang brought Nvidia public in 1999 at the height of the dot-com bubble at a valuation of $626 million, just as his company was launching its first graphic processor unit for use in computers and video games. Since then, Nvidia's stock price has appreciated 152,766% on a split-adjusted basis, sending its market valuation to just under $1 trillion.
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