Nvidia is naturally considered one of the main beneficiaries of the artificial intelligence boom because it provides both individual components of computing infrastructure and off-the-shelf server systems. On Friday, its founder Jensen Huang’s personal wealth increased to more than $204 billion.
Image source: NVIDIA
This is reported by the resource Forbes Referring to my own estimates based on the number of company shares owned by Nvidia’s CEO and its market value. The latter topped $234 per share in U.S. trading at Friday’s close after Morgan Stanley released an analyst report that positively assessed the future prospects of Nvidia’s business.
According to Forbes, Huang’s personal wealth hit $204.5 billion yesterday, making the Nvidia founder the seventh richest person in the world. Due to the positive momentum of NVIDIA’s stock price growth, Huang Jensen increased his wealth by US$4.7 billion in just one trading day. He owns about 4% of the company he founded in 1993. Nvidia shares are up 26% since the beginning of the year. The company’s founder’s personal wealth surpassed the $200 billion mark for the first time in May.
expert Morgan Stanley Based on forecasts for next year, it’s attractive to consider the ratio of the cost of one Nvidia stock to the potential specific earnings of each stock. Even though these values differ by a factor of 15, Nvidia stock is still a fairly attractive investment. Morgan Stanley said the company’s shares could rise to $300 in the foreseeable future.
Second, after meeting with Nvidia management, Morgan Stanley representatives were inspired by the idea that the company had the ability to make a lot of money selling its own CPUs, given the growing interest in agent workloads in artificial intelligence environments. If Nvidia makes about $20 billion in revenue this year from selling central processors, that number could double to $40 billion next year.
Finally, investors are interested in Nvidia stock because the company is poised to return roughly half of its free cash flow to shareholders in the form of dividends and buybacks. Furthermore, its revenue will continue to grow at a consistently high rate as demand for GPUs, which are part of artificial intelligence accelerators, shows no signs of slowing down. Currently, Nvidia’s market capitalization is $5.7 trillion, and if the positive dynamics in the stock price continue, it could exceed $6 trillion, setting an important precedent in stock market history.
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