NVIDIA CEO gets 1st raise in decade, now earns $50M
What's the story
Jensen Huang, the co-founder and CEO of NVIDIA, has received his first salary hike in a decade.
As per an SEC filing reported by CNBC, Huang's total compensation for 2025 has now hit $49.9 million.
This includes a 49% hike in his base salary to $1.5 million, a 50% hike in variable cash to $1 million, and stock awards worth $38.8 million.
Ownership
Huang's stake in NVIDIA and additional compensation
Huang owns roughly a 3.5% stake in NVIDIA, worth around $94 billion.
This massive ownership is also evident in his extra pay for 2025, which includes $3.5 million for residential security and consultation services, as well as driver services.
These fees were reportedly $2.2 million in 2024, as per the SEC filing.
Financial success
NVIDIA's market capitalization and revenue growth
NVIDIA's market capitalization has grown tremendously over the last few years, courtesy of its dominance in artificial intelligence (AI) chipmaking.
The company's total revenue for the fiscal year (FY) 2025 reached $130.5 billion, a staggering 114% year-over-year (YoY) increase.
Between December 2022 and December 2024, NVIDIA's stock price surged ninefold.
Trade hurdles
US-China chip export restrictions pose challenges for NVIDIA
Despite its financial success, NVIDIA has struggled with stricter US-China chip export restrictions under Presidents Joe Biden and Donald Trump.
The regulations restricted NVIDIA's potential Chinese market, prompting the company to design its H20 chip in accordance with US rules.
However, even with that, NVIDIA was still prohibited from selling them in China.
Market competition
Huawei's new AI chips could challenge NVIDIA's dominance
Huawei, one of China's top tech companies, is gearing up to test new AI chips that could challenge NVIDIA's offerings.
According to a report last month, Huawei will get its first batch of Ascend 910E chips, its most powerful AI semiconductor yet, from manufacturers by the end of May.
Despite US sanctions in recent years, Huawei has made great strides and now threatens NVIDIA's reign in AI chipmaking.