Nvidia Corp. (NASDAQ:NVDA) shares are trading lower on Thursday in sympathy with Micron Technologies Inc. (NASDAQ:IN) after the company reported third quarter financial results and issued guidelines Wednesday.
Nvidia shareholders approved all resolutions, including CEO Jensen Huang’s compensation.
Huang’s compensation for fiscal 2024 was about $34 million, a 60% increase from the previous year, CNBC reports.
Also read: For every $1 spent on Nvidia infrastructure, CSPs can earn $5 in GPU hosting: analyst
Huang attributed the company’s success in artificial intelligence (AI) chips to a strategic bet more than a decade ago. This long-term investment involved billions of dollars and thousands of engineers.
Nvidia’s dominant position in the AI chip market has captivated Wall Street. Recently, this led to a 10-for-1 stock split and briefly made it the most valuable public company with a valuation of $3 trillion.
During the Q&A session, Huang discussed competition from traditional chipmakers and startups. He highlighted Nvidia’s transformation from a gaming-focused company to a data center-focused company.
Nvidia aims to create new markets for its AI technology, including industrial robotics, and plans to partner with all major computer manufacturers and cloud providers.
Huang highlighted that Nvidia’s AI chips offer the “lowest total cost of ownership.”
Ben Reitzes of Melius Research expects Nvidia to provide more liquidity to shareholders, according to CNBC Fast money.
Price action: At last check Thursday, shares of NVDA were down 1.19% at $124.90 in pre-market trading.
Photo via Shutterstock
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