NVIDIA CEO Jensen Huang mentioned intensifying competition at the annual shareholders’ meeting, which resulted in a marginal increase in NVIDIA’s stock price.
On the 26th, NVIDIA recorded a 0.25% increase from the previous trading day, closing at $126.40.
After attaining the top market cap on the 18th, NVIDIA’s stock experienced a three-day decline attributed to profit-taking, resulting in a 13% drop. However, it reversed course with a more than 6% increase the following day, marking a turnaround from the downward trend.
In this situation, investors had expected Huang to announce something special at the shareholders meeting, but instead, they seemed disappointed by his statement, “Competition is intensifying.”
The shareholders meeting that day was the first since NVIDIA surpassed a market capitalization of $3 trillion, drawing attention due to the recent fluctuation in NVIDIA’s stock price.
Huang addressed shareholders at the meeting. He initially explained, “NVIDIA’s advantage in AI chips was the result of a bet made a decade ago, involving billions of dollars in AI investment and a team of thousands of engineers.”
He continued, “NVIDIA has shifted from a game-centric company to a data center-centric company,” adding, “We are actively pursuing new AI markets, including industrial robotics.” He detailed the company’s long-term strategy.
Investors appeared disappointed by his competition statement, leading to a slight increase in stock price. NVIDIA’s stock declined throughout the trading day but managed to rally toward the end, closing with gains.
At the shareholders meeting that day, shareholders approved the salary plan for executives including Huang, and appointed 12 new directors.
It is reported that Huang’s compensation package amounts to $34 million, which represents a 60% increase from the previous year.