Nvidia’s chief executive Jensen Huang became $4.2 billion richer overnight after his software company crushed Wall Street’s second-quarter earnings expectations by billions, sending its stock surging by as much as 10% in aftermarket trading on Wednesday.
Nvidia posted a record revenue of $13.51 billion for the most recent quarter ended July 30, up 88% from the primary quarter and a whopping 101% from the identical period in 2022.
The attention-popping figures boosted Huang’s fortune to $46.1 billion, based on the Bloomberg Billionaires Index, positioning the 60-year-old Taiwanese businessman to finish the 12 months ranked throughout the world’s top 25 wealthiest people.
On the close of the trading day on Wednesday, Huang’s net value had already surged over $3 billion to a complete of $42 billion — up from the $38.8 billion he was value at first of this week, the index shows.
Most of Huang’s fortune is made up of his 3.5% stake in Nvidia.
Thus, when Nvidia’s second-quarter earnings sent its stock spiking as much as 10%, to $512.50 — an all-time high — after the market closed, the co-founder saw his wealth surge with it.
Huang established Nvidia in 1993 on his thirtieth birthday to bring three-dimensional graphics into the gaming and multimedia markets.
The Taiwanese-born tech whiz — who moved to Kentucky at age 9 — reportedly conceptualized the chip giant alongside fellow engineers Chris Malachowsky and Curtis Priem at a Denny’s restaurant in San Jose, Calif., where he had worked part-time before getting his masters degree from Stanford University.
12 months to this point, Nvidia’s share price has ballooned nearly 230%.
Huang is reaping the advantages of his company’s success.
He reportedly lives in a $38 million, 9,000-square-foot mansion in San Francisco’s Pacific Heights — which boasts a rooftop deck, wine cellar, movie show and gym — along with his wife, Lori, who he met while getting his undergraduate degree at Oregon State University, and his two children, Spencer and Madison.
The California-based company’s chief financial officer, Colette Kress, said on an earnings call with investors that Nvidia “had an exceptional quarter,” noting that its $13.51 billion in revenue beat each Wall Street’s $12.6 billion estimate and the corporate’s own $11 billion prediction.
Kress, who also serves as Nvidia’s executive vp, suggested that Nvidia won’t be slowing down, and told investors to expect $16 billion in revenue at the tip of next quarter.
Analysts polled by Refinitiv on average were expecting $12.61 billion.
Adjusted revenue within the second quarter was $13.51 billion, compared with estimates of $11.22 billion.
Nvidia also posted record data center revenue of $10.32 billion — up 141% from the primary quarter and a 171% increase from the 12 months ago period.
The info center earnings also crushed analyst estimates of $7.69 billion by greater than $2 billion, based on Refinitiv data.
Meanwhile, profits at Nvidia’s gaming segment rose to $2.49 billion.
Nvidia’s results were a “‘drop the mic’ moment in our opinion that can have a ripple impact for the tech space for the remainder of the 12 months,” said Daniel Ives, analyst at Wedbush Securities.
The corporate has been cashing in on the unreal intelligence boom with the creation of AI chips that may generate text for chatbots like ChatGPT, generate code and perform image, facial and speech recognition.
Nvidia’s AI chips are already utilized by providers like Amazon, Alibaba and Microsoft — firms that run a number of the largest cloud-computing services on the market.
“A recent computing era has begun. Firms worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Huang said.
Analysts have estimated that demand for Nvidia’s prized AI chips is exceeding supply by not less than 50%, adding that the imbalance will stay in place for the following several quarters.
Thus, Nvidia is spending big to secure supply.
The corporate reported a 53% jump to $11.15 billion of inventory commitments from the previous quarter, largely due to long-term supply needs for its data center chips.
When The Post reached out to Nvidia for comment, a spokesperson pointed to the corporate’s earnings call.
With Post wires