Nvidia has gone from a niche graphics chip maker to one of the world’s most valuable tech giants, powering everything from gaming to AI. Investors, gamers, and tech enthusiasts alike often have questions about its business, stock performance, and leadership.
Here are the 15 most common questions about Nvidia shares, the company, and its CEO—answered in detail.
1. What does Nvidia actually do?
Nvidia designs and sells graphics processing units (GPUs) and related technologies. Originally built for gaming, GPUs now power data centers, artificial intelligence, autonomous vehicles, and high-performance computing. Nvidia doesn’t manufacture chips itself—it relies on foundries like TSMC to produce them.
2. Why are Nvidia shares so popular among investors?
Nvidia stock (NASDAQ: NVDA) is one of Wall Street’s hottest tech plays because of its leadership in AI chips. Its GPUs dominate the AI and machine learning market, where demand is exploding. This growth story has pushed Nvidia’s market cap into the trillion-dollar club.
3. How has Nvidia’s stock performed over the years?
In the 2000s, Nvidia was known mainly in gaming circles. From 2015 onwards, the rise of AI, data centers, and crypto mining pushed the stock into rapid growth. By 2023–2024, Nvidia became one of the top 5 most valuable U.S. companies.
Long-term investors who held since the early 2010s saw returns in the thousands of percent.
4. Who is Nvidia’s CEO?
Nvidia’s co-founder and CEO is Jensen Huang, who started the company in 1993. Known for his leather jackets and visionary leadership, Huang is widely respected for steering Nvidia into AI decades before it became mainstream.
5. What’s special about Jensen Huang’s leadership?
Huang is known for being a long-term visionary. Instead of chasing quick wins, he bet on AI and GPUs back when few believed in their potential. His hands-on technical background, ability to spot industry shifts, and relentless innovation make him one of the most admired CEOs in tech.
6. Does Nvidia pay dividends?
Currently, Nvidia pays a very small dividend, but its yield is negligible. Most of its profits are reinvested into R&D, acquisitions, and expansion. Investors primarily buy Nvidia stock for growth, not income.
7. What risks come with investing in Nvidia stock?
Some major risks include:
Competition from AMD, Intel, and upcoming AI chip startups. Geopolitical risks, as Nvidia relies on Taiwan-based TSMC for chip manufacturing. Valuation risk, since the stock trades at high multiples compared to peers. Regulation and export restrictions (e.g., U.S. restrictions on AI chip sales to China).
8. How does Nvidia make money?
Nvidia has four main revenue streams:
Gaming GPUs (still a big chunk of sales). Data centers & AI chips (fastest-growing segment). Automotive AI systems (for self-driving and infotainment). Professional visualization (workstation GPUs for designers, engineers, creators).
The real growth engine today is AI/data centers.
9. Why are Nvidia GPUs so critical for AI?
AI training and inference require parallel processing power, something GPUs excel at. Nvidia’s CUDA software ecosystem also gives it a huge edge—developers build directly on Nvidia’s platform, making it harder for competitors to catch up.
10. Is Nvidia stock overvalued?
This is a common debate. By traditional valuation metrics (P/E ratio, price-to-sales), Nvidia often looks expensive. But investors argue that its dominance in AI chips and explosive growth potential justify the premium. Whether it’s “overvalued” depends on your time horizon—short-term traders may see volatility, but long-term holders are betting on Nvidia’s AI leadership.
11. How does Nvidia compare to AMD and Intel?
Nvidia dominates in high-performance GPUs and AI. AMD competes in gaming GPUs and CPUs but has less presence in AI/data centers. Intel is strong in CPUs but has struggled in the GPU/AI space.
Right now, Nvidia holds a clear technological lead in AI hardware and software.
12. Has Nvidia ever done a stock split?
Yes. Most recently, Nvidia executed a 4-for-1 stock split in July 2021 to make shares more accessible. Splits don’t change company value but can attract smaller investors.
13. Does Nvidia only make hardware?
No. While hardware (GPUs) is the core, Nvidia also develops:
CUDA (its proprietary GPU programming platform). AI software frameworks like TensorRT. Omniverse (a 3D simulation and collaboration platform). Software gives Nvidia a moat and creates recurring revenue opportunities.
14. What’s Jensen Huang’s net worth?
As of 2024, Jensen Huang’s net worth is estimated at over $40–50 billion, largely from his Nvidia shares. This makes him one of the wealthiest tech CEOs globally.
15. Is now a good time to invest in Nvidia?
It depends on your strategy. If you believe AI will reshape industries and Nvidia will remain the leader, Nvidia could still have long-term upside. But the stock is highly volatile and sensitive to market cycles, chip demand, and tech competition. Long-term investors may benefit from buying in stages rather than all at once.
Nvidia Growth Timeline (1993–2025)
Here’s the outline for the timeline graphic:
1993 – Nvidia founded by Jensen Huang, Chris Malachowsky, and Curtis Priem.
1999 – Launch of the GeForce 256 (first GPU marketed as a “GPU”).
2006 – Release of CUDA, making GPUs programmable for general computing.
2010 – Tesla GPUs begin powering data centers.
2012 – Nvidia enters automotive AI market.
2016 – Pascal architecture pushes AI and deep learning adoption.
2018 – Ray tracing GPUs (RTX series) launched.
2020 – GPUs dominate AI training in data centers.
2021 – 4-for-1 stock split; Nvidia briefly becomes a $1T company.
2023 – AI boom skyrockets demand; Nvidia becomes top U.S. semiconductor firm by market cap.
2025 – Nvidia continues to dominate AI chips with H100 and next-gen Blackwell GPUs.
Nvidia isn’t just a gaming chip company anymore—it’s the engine of the AI revolution. Its stock has rewarded believers, but the ride hasn’t been smooth. Understanding the company, its risks, and Jensen Huang’s vision is key before investing.