Decades before Nvidia Corporation (NASDAQ:NVDA) became the world's second most valuable company, co-founder and CEO Jensen Huang admitted he launched the chipmaker with just $200 in his pocket--and no complete business plan.
What Happened: In a 2009 talk at Stanford's Technology Ventures Program, Huang recalled the humble beginnings of Nvidia, which now boasts a market cap exceeding $3.3 trillion.
"So I was 30 years old, and I'd never taken a single business class," he said, adding that the early days were anything but fast-paced.
For about six months, Hunag recalled that they just sat around one of the co-founder's townhouses in Fremont. The big decision each day was, ';Where do you guys want to go to lunch?'"
See Also: Nvidia’s Quantum Pivot? Jensen Huang-Led Chip Giant Reportedly Mulls Major Stake In PsiQuantum
He then incorporated Nvidia on his 30th birthday in 1993, with the help of a lawyer, using the $200 he had in his pocket to buy a 20% stake. He then told his two co-founders, Chris Malachowsky and Curtis Priem, who each invested $200 for a 20% stake in the company.
Despite this slow start, Huang said what really matters to venture capitalists isn't a polished business plan, but the people behind it. VCs don't invest in business plans, he said, adding that they invest in great people. "Your reputation matters. Your history matters."
He then admitted he never finished the startup book he picked up. "I never finished my business plan … never could figure out how to finish a business plan."
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It's Important: Nvidia was established on April 5, 1993, to advance 3D graphics in gaming and multimedia.
A major turning point came in 1999 when the company introduced the GPU (graphics processing unit), a breakthrough that would go on to transform the computing landscape.
In May 2023, Nvidia's market value surpassed $1 trillion, and within a year, it crossed the $2 trillion and $3 trillion marks, briefly becoming the world's most valuable publicly traded company in 2024.
As of now, Nvidia holds a market capitalization of $3.306 trillion, making it the second most valuable company globally, just behind Microsoft.
The company went public on Jan. 22, 1999, with shares priced at $12. A $1,000 investment made during its IPO would now be worth approximately $3.39 million, based on a current share price of $135.57, turning early investors into potential millionaires.
Nvidia is scheduled to release its first-quarter earnings after the market closes on May 28. According to Benzinga Pro, analysts expect the company to report earnings of 89 cents per share, with revenue projected at $43.07 billion.
Price Action: Nvidia shares edged up 0.13% to $135.57 during Monday's regular trading session and gained an additional 0.074% in after-hours trading.
According to Benzinga Edge Stock Rankings, Nvidia boasts a strong growth score of 95.02%. Click here to see how it compares to other leading tech companies.
Photo Courtesy: jamesonwu1972 on Shutterstock.com
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next:
- Nvidia Boss Jensen Huang’s Total Compensation Hits $50M After First Raise In 10 Years
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
