1y ago

Nvidia is now worth $102M per employee

I know this is more business than tech related, but for some reason I am not able to post it to the business community, so I'm posting it here.

"...For Nvidia, after this latest run-up took it north of the $3T milestone, the company is being valued at more than $100M for each of its 29,600 employees (per its filing that counted up to the end of Jan 2024).

That’s more than 5x any of its big tech peers, and hundreds of times higher than more labor-intensive companies like Walmart and Amazon. It is worth noting that Nvidia has very likely done some hiring since the end of January — I think the company might be in growth mode — but even if the HR department has been working non-stop, Nvidia will still be a major outlier on this simple measure.

We are running out of ways to describe Nvidia’s recent run... but a nine-figure valuation per employee is a new one."

Technology @beehaw.org

sigmaklimgrindset @sopuli.xyz

1y ago

Nvidia is now worth $102M per employee

sherwood.news /markets/nvidia-is-now-worth-usd102m-per-employee/

39 comments

And every employee will recieve the industry standard 3% raise based on performance at the end of year.
- I'm like 90% sure Nvidia employees get stock options, but I'm not sure if that'd be the case for the newest batch of hires.
  But yeah, this is a clear cut illustration of how salaries undervalue the actual labour provided, I don't think any Nvidia employee's getting 100M from their stocks + salary.
  
  RSUs are kinda shit too though. According to coworkers at my company that are actually valued enough to receive them, they're pretty difficult to sell
  
  Ummm, nope. Some might, but not everyone by a longshot. Salaries aren't great either.
- You guys get raises?
  
  Yes and if your employer doesn't give you one you should leave.
At least the article points out that this is a Wall Street valuation, meaning it's meaningless in reality, the company doesn't have that much money, nor is it actually worth that much. In reality, Nvidia's tangible book value (plant, equipment, brands, logos, patents, etc.) is $37,436,000,000.
$37,436,000,000 / 29,600 employees = $1,264,729.73 per employee
Which isn't bad considering the median salary at Nvidia is $266,939 (up 17% from last year).
- Book value doesn't take into account future value, wall street value does
  
  Meaning speculation. Just because someone is willing to buy Nvidia stock at a $3 trillion valuation doesn’t mean it will someday achieve that kind of tangible value.
- At least the article points out that this is a Wall Street valuation
  Market cap is not just a "Wall Street valuation" (whatever that means).
  meaning it’s meaningless in reality
  Tell that to the stockholders.
  
  The stockholders don't live in reality either
The AI bubble
- Nvidia is in a great spot for the AI bubble.
  It drives up prices now, but when the bubble eventually burst, data centers are still going to need accelerators for more viable compute tasks.
  Absolutely the most robust business in the bubble.
- The AI bubble powered by the US military budget.
Valuation per employee...doesn't pay the employees their worth. Or anywhere near it.
I was excited that the employees were logged as primary shareholders. Like every employee in every company should be.
Personally I'm an AMD guy, I don't like the proprietary approach Nvidia takes to everything.
But I have to admit, Nvidia has been on the ball for 30 years now, and it's very impressive what they have achieved.
I think the rest of the industry needs to pool together around an open standard, if they want to have a chance to compete against the near monopoly Nvidia has because of CUDA.
- Is there anything fundamentally superior about Cuda over open CL?
  
  Yes: market share. And Nvidia has the top performing cards on the market, so there's no reason to go with a competitor.
  
  I am not an AI programmer so I can't really say. But CUDA had a head start and was some years ago allegedly the best combo with Nvidia hardware for AI programming. Over a period of time a lot of companies/projects have come to use CUDA, and so it has an advantage both for compatibility and know how among many AI programmers.
  It's kind of like how X86 has maintained a market lead on desktops and servers, despite ARM being very competitive. The change of API is disruptive and costly, so people stay with what already works.
https://feddit.uk/post/12865710
[The execs and above are] Well compensated for pouring jet fuel on climate disaster.
Delete Nvidia
Me too! Sadly I have 0 employees.

39 comments