Tuesday, April 1, 2025

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

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

Hot this week

POCO F7 Pro Packs Snapdragon 8 Gen 3 and 120Hz Display—All Under $500

Xiaomi's POCO F7 Pro and Ultra launched in Singapore, featuring sleek designs, impressive specs, and competitive pricing for South Korea.

Lunar Ambitions Accelerate as Korea Develops Rover Propulsion System

KERI transfers electric powertrain tech to UEL for lunar rovers, aiming for self-sufficiency in space exploration by 2032.

German Woman, 66, Gives Birth to 10th Child—Naturally

A 66-year-old German woman, Alexandra Hildebrandt, gives birth to her 10th child naturally, emphasizing health and family joy.

Trump Warns Putin: Ceasefire or Face Tariffs on Russian Oil

Trump grows impatient with Russia over ceasefire negotiations in Ukraine, threatening tariffs on Russian oil if no agreement is reached.

Gold Tops $3,100 for the First Time Ever as Inflation Fears Mount

Gold prices have exceeded $3,100 per ounce, driven by inflation concerns and a downturn in U.S. stock markets.

Topics

POCO F7 Pro Packs Snapdragon 8 Gen 3 and 120Hz Display—All Under $500

Xiaomi's POCO F7 Pro and Ultra launched in Singapore, featuring sleek designs, impressive specs, and competitive pricing for South Korea.

Lunar Ambitions Accelerate as Korea Develops Rover Propulsion System

KERI transfers electric powertrain tech to UEL for lunar rovers, aiming for self-sufficiency in space exploration by 2032.

German Woman, 66, Gives Birth to 10th Child—Naturally

A 66-year-old German woman, Alexandra Hildebrandt, gives birth to her 10th child naturally, emphasizing health and family joy.

Trump Warns Putin: Ceasefire or Face Tariffs on Russian Oil

Trump grows impatient with Russia over ceasefire negotiations in Ukraine, threatening tariffs on Russian oil if no agreement is reached.

Gold Tops $3,100 for the First Time Ever as Inflation Fears Mount

Gold prices have exceeded $3,100 per ounce, driven by inflation concerns and a downturn in U.S. stock markets.

Oil Rally Ends as Stagflation Fears Shake Market Confidence

Fears of U.S. stagflation have lowered oil prices, ending Brent crude's week-long rally despite weekly gains.

Wall Street Slammed by Stagflation Fears—Nasdaq Tanks 2.7%

US stocks plummeted amid stagflation fears, with consumer confidence hitting a three-year low and tech shares suffering significant losses.

Golf Diplomacy? Vietnam Courts Trump to Dodge Tariffs

Vietnam seeks to navigate U.S. tariffs through diplomacy, including golf, while maintaining a significant trade surplus.

Related Articles