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Nvidia CEO addresses shareholders for the first time since the spike in their stock price.

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Chief Executive Officer of Nvidia, Jensen Huang, interacts with shareholders for the inaugural time post the upsurge in their stock value. The session took place on June 2, 2024, in Taipei, just before Computex 2024, where Huang delivered a pivotal address.

Huang emphasized that Nvidia’s competitive edge in AI chips stems from a strategic decision made over a decade ago. This has involved substantial investments in AI amounting to billions of dollars and a workforce comprising thousands of engineers.

During the Q&A segment of Nvidia’s recent shareholder gathering, Huang shed light on the company’s remarkable performance amid increased market interest in its dominance in the AI chip sector. Since the previous year’s meeting, Nvidia’s stocks have soared by 193%, undergone a 10-1 split, surpassed a valuation of $3 trillion, and briefly claimed the position of the most valuable company in the U.S.

Responding to queries during the meeting, Huang touched upon the company’s stance on competition, as rivals from established chip manufacturers to emerging startups introduce products aiming to challenge Nvidia’s over 80% market share in AI chips.

Despite a slight decrease in Nvidia’s shares during trading on that day, Huang articulated the company’s overarching strategy to sustain its market dominance. This includes Nvidia’s transition from a focus on gaming to becoming a data center-centric entity. Moreover, the company is exploring new avenues for its AI application, like in industrial robotics, and intends to collaborate with computer and cloud service providers extensively.

Huang highlighted that Nvidia’s AI chips offer the most cost-effective solution in terms of total ownership expenses. He suggested that while alternative chips might have lower upfront costs, Nvidia’s chips deliver superior performance and operational cost benefits in the long run.

Furthermore, Huang expressed that Nvidia has established a “virtuous circle” in the technology sector. This concept implies that a platform with the highest number of users can continuously enhance itself to attract more users, leading to a self-reinforcing cycle of growth.

Shareholders positively received Nvidia’s performance and endorsed a nonbinding resolution on executive remuneration, known as “say on pay.” Nvidia executives are compensated through a combination of salary and various forms of restricted stock units.

According to Nvidia’s annual filing, Huang’s compensation package for the 2024 fiscal year totaled around $34 million, marking a 60% surge from 2023.

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