Nvidia CEO Jensen Huang discusses increasing competition at the company's first shareholder meeting following stock growth.

• Nvidia CEO Jensen Huang addressed shareholders' inquiries during the company's initial shareholder gathering since its stock price increase.
• Over the past year, Nvidia has experienced significant growth: Its stock has increased by 193%, the company has surpassed a $3 trillion valuation, and for a brief period, it was the most valuable company in the U.S.

Over 10 years ago, CEO Jensen Huang made a bet that led to the company's advantage in artificial intelligence chips. This bet involved billions of dollars in AI investment and a team of thousands of engineers.

During Nvidia's first shareholder meeting since its stock began to surge, Huang made comments about the company's dominant position in the AI chip market, which had attracted Wall Street's interest.

Over the past year, Nvidia has experienced significant growth, with its stock increasing by 193%, its shares being split 10-1, the company achieving a $3 trillion valuation, and briefly holding the title of the most valuable company in the U.S.

On Wednesday, Huang was asked about the competition facing the company, with both traditional chipmakers and startups releasing products aimed at challenging Nvidia's dominant 80% market share in AI chips.

Nvidia shares fell more than 1% in trading on Wednesday.

Huang presented Nvidia's strategy to maintain its market position, emphasizing its shift from a gaming-focused company to a data-center-centric one. Additionally, Nvidia aims to expand its AI offerings into new markets, such as industrial robotics, and plans to collaborate with every computer manufacturer and cloud provider to achieve this goal.

Huang stated that Nvidia's AI chips offer the "lowest total cost of ownership" by considering their performance and cost to run, implying that although other chips may be cheaper, Nvidia's are more economical overall.

Nvidia has created a "virtuous cycle" in the technology industry, where its platform has the most users, enabling it to make improvements to attract even more users.

NVIDIA's platform is widely accessible through major cloud providers and computer manufacturers, attracting a large customer base and increasing its value to developers and customers, according to Huang.

Nvidia shareholders approved a non-binding vote on executive compensation, known as "say on pay," despite their satisfaction with the company's performance. Nvidia executives receive compensation in the form of stock and various restricted stock units.

During the 2024 fiscal year, Huang received a $34 million compensation package, which was a 60% increase from the previous year, as stated in the company's proxy.