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How NVIDIA’s Early Bet on AI Paid Off Big Time

Daniel Kim Views  

Financial News

On June 26, Nvidia CEO Jensen Huang, stated, “Nvidia’s dominance in the AI chip field was due to a decision made over a decade ago.”

Speaking at the annual shareholders meeting that day, Huang said, “With billions of dollars in AI investments and a team made up of thousands of engineers, we have become an AI-centric company.”

He emphasized that Nvidia has transformed from a gaming company to a company centered on AI and AI data centers during the 30-minute shareholders meeting.

Huang also introduced strategies to maintain Nvidia’s position in the AI chip market, where it has over 80% market share.

Huang explained, “Nvidia is exploring the creation of new AI markets, such as industrial robots,” adding, “To achieve this, we aim to collaborate with all computer manufacturers and cloud service providers.”

Huang also expressed confidence in the quality of Nvidia’s AI chips.

He emphasized that Nvidia’s AI chips have the lowest total cost of ownership. In other words, Nvidia’s AI chips offer good value for money. Although he did not mention competitors, he stressed that while other companies’ AI chips may be cheaper, Nvidia’s chips are more economical when considering performance and operating costs.

Huang stated, “Nvidia has achieved a virtuous cycle of being able to make improvements to attract more demand.”

Huang further explained, “Nvidia’s platform is provided to all major cloud service providers and computer manufacturers,” adding, “Through this, our customers can build a large foundation for developers and customers, providing greater value to our customers.”

At the shareholders meeting, Nvidia shareholders approved all 12 director candidates recommended by the board and the executive compensation plan, expressing satisfaction with the company’s performance.

According to Nvidia’s annual report, Huang received a total compensation package of $34 million for the fiscal year 2024, roughly a 60% increase from the previous year.

Meanwhile, Nvidia’s stock price was not significantly affected by the shareholders’ meeting. It closed at $126.40, a 0.25% increase from the previous trading day.

Financial News
Daniel Kim
content@viewusglobal.com

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