Nvidia's Surging Stock Propels CEO Huang Toward Top 20 Richest as AI Demand Skyrockets
Nvidia's stock reached a record high of $780.85, pushing the company's market value to $2 trillion after a surge in share price. The semiconductor giant reported a forecasted revenue growth of 233% for the first quarter, surpassing analysts' expectations of a 208% increase. This bullish outlook has contributed to Nvidia's substantial addition to its market capitalization, potentially increasing it by $260 billion if the stock gains are maintained.
Despite potential challenges from US restrictions on chip sales to China, Nvidia's robust performance has positively impacted the wider chip sector, with significant rises in European and Japanese stock indices. Trading at a forward price-to-earnings ratio of approximately 29 times, Nvidia stands above the industry median of 25.3 times.
The company's success has also had a pronounced effect on its CEO, Jensen Huang, who saw his net worth increase by $8.9 billion, placing him as the 21st richest person globally with a fortune of $68.7 billion. Over the past decade, Nvidia's market capitalization has surged by around 20,000%, with a 500% increase in just the past 18 months. As a leading player in the production of graphics processing units for video games and generative AI, Nvidia is projected to achieve a revenue of about $65 billion in the current fiscal year.
