76% of NVIDIA employees are millionaires, it is crazy that 37% are worth over $20 million—the staggering pace and scale of growth will certainly impact you. Read on for second-order impact.
1. More than 50% of S&P 500 and NASDAQ returns in the past 24 months is solely driven by NVIDIA. It will impact your pension and investments.
2. 76% of NVIDIA's 30K employees are millionaires, it is crazy that 37% or 11,000+ FTE are worth over $20 million, imagine buying a house in the San Francisco Bay area in 2024.
3. NVIDIA's market cap reached 3 Trillion USD, which is greater than the UK GDP of 2.6 Trillion USD (68 million population Vs. 30K employee in NVIDIA).
4. The market now values Nvidia at $100M+ per employee.
5. Nvidia's market cap was USD 10 Billion in 2014. An investment of $1,000 in Nvidia in June 2014 would be worth over $297,600, that is a cumulative growth of 29,660%.
6. During COVID, the Fed injected $8 trillion of cash into the economy. This influx of cash ended up on company balance sheets or in individual savings accounts. Everyone is searching for the next big thing.
7. Technology has driven human civilization forward for the past 5000 years- the discovery of fire, the invention of the wheel, the industrial revolution, and so on. Gen AI is tipped to be the next fire/wheel.
8. The Magnificent Seven is a group of stocks that includes Amazon.com Inc., Alphabet Inc., NVIDIA Corp., Tesla Inc., Meta Platforms Inc., Apple Inc., and Microsoft Corp. Together, these companies were the drivers of most of the S&P 500's gains last year. S&P500 returns excl. Mag 7 is lower than inflation.
9. Because of extreme concentration, even a minor wobble will have far-reaching consequences in the global economy.
“Interest rates are to asset prices … like gravity is to the apple”
10. Berkshire’s cash holdings reached a record high of $277bn in June 2024 after Warren sold $76bn of Apple stocks. The company ploughed those proceeds into short-term Treasuries, as Buffett scaled back in US equity markets.
Exponential growth and decay are not intuitive, those who grasp the concept can spot opportunities and dangers ahead of time.
Have a fantastic summer break. Take it easy until next time.
Remember, Views are personal and certainly not investment advice.
You can read my writings at view all blogs.