Nvidia CEO Jensen Huang’s Net Worth Reaches $142 Billion, As Company Market Cap Sets Record

By Douglas A. McIntyre Published Jul 10, 8:43AM EDT

Key Points

Nvidia’s Market Cap Set Record At $4 Trillion
Huang Owns 3.5% Of Shares

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Nvidia CEO Jensen Huang’s Net Worth Reaches $142 Billion, As Company Market Cap Sets Record — © Public Domain / Wikimedia Commons

Nvidia (NASDAQ: NVDA | NVDA Price Prediction) is the first company in history to hit a market cap of $4 trillion. The increase took the net worth of CEO Jensen Huang to $142 billion. That makes him the 10th richest person in the world behind Berkshire Hathaway’s (NYSE: BRK-B) Warren Buffett whose net worth is $144 billion. An investment of $1,000 in the stock a decade ago would be worth $288,000 a day. Huang owns 3.5% of Nvidia.

The increase is almost entirely due to the rise of the value of AI driven companies. Nvidia is by far the largest provider of chips to the sector.

Nvidia stock trades near $164. In early April, shares traded at $92. Shares stumbled four months ago after Huang said, “the $50 billion China market is effectively closed to U.S. industry.” His reference was to artificial intelligence (AI) chips, a business Nvidia dominates. CNBC points out that this challenge will not hurt the company as badly as first expected. In fact, Nvidia expert Loop Capital said its market cap is headed toward $6 trillion because of its dominant position in the sector.

Another reason Nvidia faltered was concern that AI adoption had slowed. Earnings reports from tech giants like Microsoft (NASDAQ: MSFT) raised that issue. However, Nvidia’s largest customers continue to put hundreds of billions of dollars into AI data centers, which are at the heart of the industry. Nvidia’s market share of add-in-board GPUs was 92% in the first quarter.

A primary reason for the rally is Nvidia’s earnings. In its report, it offered a rosy picture of its near-term future. In the most recent quarter, revenue rose 69% year over year to $44.1 billion. Per-share earnings rose 27% to $0.76. The company added, “Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.”

In the current quarter, the company expects revenue of $45 billion, plus or minus 2%. Its extraordinary revenue growth continues. According to Yahoo, the analysts’ forecast is slightly higher than that.

The AI revolution has not slowed, and Nvidia’s market cap is a sign of that. And Huang’s net worth has gone along for the ride.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.