Nvidia CEO Jensen Huang addressed shareholders at the company’s annual meeting following a remarkable surge in stock value that briefly made Nvidia the most valuable public company with a $3 trillion valuation. Huang attributed Nvidia’s success in AI chips to a decade-long strategy involving billions of dollars in investment and a dedicated team of thousands of engineers. During the Q&A session, Huang discussed the company’s strategy to maintain its dominant market position in the face of rising competition.
He emphasized that Nvidia’s AI chips offer the “lowest total cost of ownership” despite potentially higher upfront costs, as they are more economical in terms of performance and operational expenses. Huang also highlighted the concept of a “virtuous circle” in technology, where having a large user base attracts more users and enhances the platform’s value.
Nvidia’s AI chip strategy discussed
He stated, “The Nvidia platform is broadly available through every major cloud provider and computer maker, creating a large and attractive install base for developers and customers, which makes our platform more valuable to our customers.
Nvidia is exploring new markets for its AI technologies, such as industrial robotics, and aims to partner with every computer maker and cloud provider to expand its reach. Huang expressed confidence in the upcoming Blackwell platform, declaring it could be the company’s “most successful product” ever. Shareholders approved all resolutions during the meeting, including executive compensation packages.
Huang’s compensation for the 2024 fiscal year was approximately $34 million, a 60% increase from the previous year. Despite a slight drop in trading on Wednesday, overall shareholder sentiment remained positive given Nvidia’s performance and future outlook. The company’s shares have experienced a more than 200% surge over the past year, solidifying its position as a leader in the AI chip market.