Nvidia's $3 trillion boosts Jensen Huang's wealth

The AI-craze has lifted the valuation of Nvidia to beyond $3 trillion and boosted the wealth of Jensen Huang.

Huang steadily climbed to the world's wealthiest ranks as the market value of his computer chip maker has risen sharply.

The Nvidia boss's wealth comes from a 3.5% stake in the company, which he helped start in 1993 with Chris Malachowsky and Curtis Prim.

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On Wednesday, Nvidia became the first computer chip company to reach $3 trillion in market value, and on Friday, it was flirting with that mark again.

In doing so, the chipmaker surpassed Apple in market value.

According to the Bloomberg Billionaires Index, Huang overtook Michael Dell on Friday to become the 13th in the world's richest list,

His net worth stands at $106.1 billion.

This marks another big milestone for Huang, with his wealth growing by more than %62 billion dollars in 2024.

This is driven by the endless demand for Nvidia chips used to power AI and the 61-year-old's rise in taking over Silicon Valley.

Two other people who have benefitted from the AI craze are Lisa Su, the CEO of Advanced Micro Devices, and Charles Liang, the CEO of Super Micro Computer.

Huang's wealth topped that of every member of the Waltons, who are America's richest family.

This happened last month, after another solid earnings quarter for the chipmaker.

Today, Nvidia commands an ecosystem of hardware and software solutions that rivals AMD and Intel, and they are trying hard to break up or replicate.

This is mainly due to its dominant share of the market for the high-end accelerators used to train AI, and it has yet to show any signs of slowing down or letting its rivals catch up.

Huang said the firm plans to upgrade its so-called AI accelerators every year.

The markets have also rallied significantly on bets on AI and big tech firms this year. The S&P 500 is near a fresh record high, with the market cap of major tech firms growing.

Investors have bet on AI-related companies as the innovation in tech and profit opportunities from this rising technology globally.

With Nvidia being the poster child of AI, the company's rise is not surprising.

However, the breadth of the company's stock rally has surprised everyone despite a weak global economic backdrop, especially considering the Federal Reserve is still on the sidelines and has yet to bring out its knives on rates.

Still, the ever-changing tech dynamics peg AI as the next big thing, and analysts expect Nvidia's rising popularity to continue.