Nvidia, the chipmaking giant, experienced a significant market rally on Tuesday that propelled it to become the world’s most valuable public company, surpassing Microsoft. This surge in value also resulted in a boost to CEO Jensen Huang’s net worth. In out-of-hours trading on Wednesday, Nvidia’s shares continued to rise, reaching over $136, after hitting an all-time high of $135.58 at market close on Tuesday, representing a 3.5% jump. Other chip stocks also saw an increase in value, especially in Asia, where major tech manufacturers are located, including some of Nvidia’s main competitors.
Chip rivals such as Taiwan Semiconductor Manufacturing Company (TSMC), Hua Hong Semiconductor, and Semiconductor Manufacturing International Corp witnessed their shares surge, with South Korean chipmakers Samsung Electronics and SK Hynix also experiencing notable gains during trading hours. Despite some fluctuations, U.S. chipmaking giants like Arm Holdings, Micron Technology, and Intel remained relatively stable in out-of-hours trading on Wednesday. Additionally, Hon Hai Technology Group, also known as Foxconn, saw its shares rise by over 2% following Nvidia’s rally, as the Taiwanese company has partnered with Nvidia to develop AI data centers.
Nvidia’s transformation from a gaming chipmaker to a leading player in the AI industry has been remarkable. In just a few years, Nvidia’s market capitalization has grown from around $16 billion in 2016 to nearly $800 billion in 2021, before dropping to around $300 billion in 2022. The surge in demand for specialized AI chips, driven by the rise of generative artificial intelligence, has played a significant role in Nvidia’s meteoric rise. The company’s value has multiplied from approximately $400 billion in late 2022 to $3 trillion by mid-2024 on a steep upward trajectory, with its shares up more than 170% in 2024 alone.
The AI boom has not only benefited Nvidia, but also its CEO Jensen Huang. Forbes estimates his wealth at $118.7 billion, making him the 11th richest person in the world. Huang’s fortune has continued to grow rapidly, with a $4 billion increase reported on Tuesday alone. He now sits ahead of Indian billionaire Mukesh Ambani and is closing in on the top ten richest individuals globally. Despite his wealth, Huang trails behind Microsoft billionaires Steve Balmer and Bill Gates, who are worth $130.6 billion and $133.5 billion respectively. The ongoing success of Nvidia and Huang’s wealth accumulation reflects the company’s strong position in the AI market and its potential for further growth.
