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News

Nvidia's Market Value Nears $2.3T, Boosting CEO's Pay and Employee Salaries

Author: Anusuya Lahiri | May 15, 2024 08:18am

Nvidia Corp’s (NASDAQ:NVDA) CEO Jensen Huang received a 60% pay boost last fiscal year. His compensation reached $34.2 million courtesy of the artificial intelligence frenzy. 

Huang’s pay package included $7 million more in stock awards than the previous year, a $4 million cash bonus, and an additional $2.5 million for other expenses like residential security and consulting fees, the Wall Street Journal cited from a regulatory filing. 

Also Read: How Does The Semiconductor Index Trend Compare To Nasdaq? Analyst Opines

CFO Colette Kress’s compensation was $13.3 million, up 22%. 

Nvidia’s stock gained 216%, fueled by its AI chips and GPU market moats. With a nearly $2.3 trillion market value, it is one of the world’s most valuable companies. 

This financial success also increased median employee pay to $266,939, up 17% from the previous year.

Nvidia analysts flagged potential upside from its strong pricing power. They noted a considerable upside to fiscal 2026 earnings that is still not fully priced.

Meanwhile, Nvidia remains vulnerable to the brewing geopolitical tensions between the U.S. and China as the latter retaliated to Washinton’s advanced semiconductor technology embargo. However, the company always maintained any significant impact from the bans.

Investors can gain exposure to Nvidia via EA Series Trust Strive U.S. Semiconductor ETF (NYSE:SHOC) and VanEck Semiconductor ETF (NASDAQ:SMH).

Price Action: NVDA shares closed higher by 1.06% at $913.56 on Tuesday.

Also Read: China Criticizes US Chip Export Rules Impacting Nvidia And AMD

Photo via Shutterstock

Posted In: NVDA SHOC SMH