HomeWinBuzzer NewsNvidia CEO Addresses AI Chip Market and Future Goals

Nvidia CEO Addresses AI Chip Market and Future Goals

Jensen Huang says Nvidia could enter long-term supply agreements or prepay for manufacturing capacity.

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During 's first shareholder meeting, CEO Jensen Huang addressed the crowd after the company saw a significant rise in its stock value.

Nvidia's stock has climbed more than 200% over the past year, pushing the company's valuation to $3 trillion and making it the most valuable company in the U.S. at one point.

Strategic Focus on AI Investments

Huang credited Nvidia's market-leading position in AI chips to over ten years of strategic investments. The company has invested billions in research and development, supported by a large engineering team.

Nvidia has transitioned from its gaming roots to becoming a data-center-centric operation. Now, Nvidia's AI chips find applications across various sectors, including industrial robotics, due to collaborations with major computer manufacturers and cloud service providers.

Nvidia's increased focus on AI and data centers, bolstered by strategic alliances and a strong engineering base, helps the company manage competitive threats and maintain market dominance. The reach of Nvidia's AI chips spans across several industries, including industrial robotics, with the company aiming to partner with all major computer and cloud service providers.
 

Handling Market Competition

During the Q&A, Huang addressed increasing competition from established chip manufacturers and new startups. He outlined Nvidia's strategy to offer the most cost-efficient AI chips when performance and operational expenses are considered.

Although rivals may offer cheaper alternatives, Huang argued Nvidia's overall value proposition is stronger. He also highlighted Nvidia's broad platform access through major cloud providers and computer manufacturers, which creates a positive feedback loop, attracting more users and enhancing the platform.

The shareholders expressed their approval by supporting a non-binding resolution on executive pay. They confirmed all 12 director nominees recommended for the board, endorsed the executive pay plan, and reaffirmed PwC as the company's auditor.

Additionally, they adopted a resolution advocating for a simple majority shareholder vote on certain matters that used to demand a two-thirds majority, such as the dismissal of directors without cause or the modification of the company's bylaws. Nvidia did not make any recommendations regarding this proposal.

Asked about how Nvidia is addressing the tight market for semiconductor manufacturing capacity, he said the company “has the expertise and scale to develop a resilient supply chain.” Huang added that the company could enter long-term supply agreements or prepay for manufacturing capacity to ensure it can meet customer demand.

For the fiscal year 2024, Huang's compensation was around $34 million—up 60% from the previous year. Nvidia's executive compensation combines salary and restricted stock units, aligning their goals with the company's long-term achievements.

SourceNvidia
Markus Kasanmascheff
Markus Kasanmascheff
Markus is the founder of WinBuzzer and has been playing with Windows and technology for more than 25 years. He is holding a Master´s degree in International Economics and previously worked as Lead Windows Expert for Softonic.com.