Nvidia CEO speaks at first shareholder meeting since stock price surges | Wilnesh News

Nvidia CEO Jen-Hsun Huang said on Wednesday that the company’s advantage in artificial intelligence chips stems from a bet made more than a decade ago, focusing on billions of dollars in artificial intelligence investment and a team of thousands of engineers.

Huang made the comments during a question-and-answer session at Nvidia’s first shareholder meeting since the company’s stock price began soaring, following growing Wall Street interest in the company’s dominance of the artificial intelligence chip market.

Since last year’s meeting, the company has experienced historic growth: Nvidia’s stock price is up 193%, its stock split is 10:1, the company’s valuation has reached $3 trillion, and it briefly became the most valuable company in the United States. The ranks of value companies.

The first question Huang answered on Wednesday was about the company’s competition, as traditional chipmakers and startups alike have released products aimed at challenging Nvidia’s more than 80% market share in artificial intelligence chips.

Nvidia shares fell more than 1% in trading on Wednesday.

Without naming competitors, Huang laid out the company’s overall strategy to maintain its position and floated the idea that Nvidia has “transformed” from a previous gaming-focused company into a data center-focused company. The company is also looking to create new markets for its artificial intelligence, such as in industrial robotics, and plans to work with every computer maker and cloud provider to do so.

Huang said its AI chips offer the “lowest total cost of ownership,” suggesting that while other chips may be cheaper, Nvidia’s chips are more economical given their performance and operating costs.

Ultimately, Huang said Nvidia has achieved a “virtuous cycle,” tech industry jargon for when a platform has the most users, so it can make the improvements it needs to attract more users.

“The NVIDIA platform is widely available through all major cloud providers and computer manufacturers, creating a large and attractive installed base for developers and customers, which makes our platform even more valuable to customers,” Huang said.

Nvidia shareholders were pleased with the company’s performance and approved a nonbinding vote on top executive pay, known as a “say on pay.” Nvidia executive compensation consists of salary and various restricted stock units.

Huang received a compensation package worth about $34 million in the company’s fiscal 2024, a 60% increase from 2023, according to the company’s annual filing.