Nvidia CEO Rides AI Chip Wave As Net Worth Spikes 98% To Outpace Zuckerberg's Growth

Nvidia Corp. NVDA shares have been on a roll so far this year, as they rebounded from a 50%+ drop in 2022.

The stock surge has appreciably boosted the net worth of the company's co-founder and CEO Jensen Huang.

Huang's Windfall: Huang is currently ranked 49^th in Bloomberg's Billionaires list and his wealth is estimated at $27.3 billion.

The Nvidia CEO has grown his net worth by 98% this year, faster than the 94% rate by which Meta Platform's Mark Zuckerberg grew his wealth, Bloomberg reported. In absolute dollar terms, the Meta CEO leads with a $43.1 billion wealth accretion.

Huang's wealth accretion in 2023 marked the fastest growth among U.S. and global tech billionaires, Bloomberg said. His wealth is tied mostly to Nvidia stocks and the options contracts he is in possession.

Nvidia stock has the best-performing S&P 500 stock in the year-to-date period, having gained 106.5%. Meta is a close second with a 101.50% gain.

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What's Driving Nvidia: Nvidia's accent on artificial intelligence – a technology that has taken the world by storm this year, has worked to the chipmaker's advantage. The development of large language models involves training and inference, and Nvidia's chips power most of these AI models.

Most big whales have reposed confidence in Nvidia's AI story. This is evident from the 13Fs filed for the first quarter, which showed many hedge funds increasing their bets on Nvidia. Chase Coleman's Tiger Global Management and David Tepper's Appaloosa were among the firms that raised their stake in the chipmaker in the bygone quarter.

The positive sentiment around Nvidia's AI exposure has put the China chip ban concerns on the back burner. The U.S. has restricted the sale of powerful chips to China in a hostile stance against the latter. Nvidia, which relies on the country and Taiwan for the bulk of its chip sales, found a workaround by offering a new chip, which is almost similar to the banned chip but for the speed.

Nvidia closed Wednesday’s session 3.30% higher at $301.78. according to Benzinga Pro data.

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Photo courtesy: Nvidia Corp on Flickr