Nvidia CEO Jensen Huang addresses rising competition at shareholder meeting after historic stock surge

🌈 Abstract

The article discusses Nvidia CEO Jensen Huang's comments at the company's annual shareholder meeting, where he addressed the rising competition Nvidia is facing in the artificial intelligence (AI) chip market.

🙋 Q&A

[01] Nvidia's Competitive Position

1. What did Huang say about Nvidia's advantage in the AI chip market?

• Huang said Nvidia's advantage in AI chips was due to a bet the company made more than 10 years ago, involving billions of dollars in AI investment and a team of thousands of engineers.

2. How did Huang describe Nvidia's strategy to maintain its position?

• Huang stated that Nvidia has transformed into a data center-focused company from its previous gaming focus.
• Nvidia is looking to create new markets for its AI, such as in industrial robotics.
• Nvidia aims to partner with every computer maker and cloud provider to expand its platform.
• Huang said Nvidia's AI chips provide the "lowest total cost of ownership" compared to competitors.
• Huang believes Nvidia has achieved a "virtuous circle" where its platform is broadly available, creating a large and attractive install base for developers and customers.

3. How did Nvidia's stock performance and valuation change over the past year?

• Nvidia's stock has surged more than 200% over the past year.
• The company briefly became the most valuable public company, passing a $3 trillion valuation.
• Nvidia recently split its stock 10-for-1.

4. How did Nvidia shareholders respond to the company's performance?

• Nvidia shareholders approved a nonbinding vote on executive compensation, known as "say on pay."
• Nvidia CEO Jensen Huang received a compensation package worth about $34 million during the company's 2024 fiscal year, a 60% increase since 2023.