What happens if Nvidia employees hit their “number?”
In case you missed it, Nvidia had their quarterly earnings report yesterday, and the semiconductor juggernaut recorded $30 billion in revenue and $16.9 billion in net income as big tech companies continue spending money hand-over-fist to build their AI offerings.
One reason that Nvidia has done so well is that, thanks to its market dominance, it can flex its pricing power on customers, as seen in its 75.1% gross margins last quarter.
But the big question now is, how long will Nvidia’s dominance continue? Competition from its own customers is a risk, as big tech companies are now investing in their own chips to diversify away from Nvidia’s products. However, another risk, which I haven’t seen discussed as much, is Nvidia’s ability to keep its employees motivated now that they’re rich.
Nvidia stock has gained 3,776% since the start of 2019 as the company benefits from selling the main chip necessary for artificial intelligence work, minting many new multimillionaires in the process. But the work hours are just as grueling and high-stress, current and former employees said, leaving little time for the jet-setting, homebuying and leisure many can now afford. A culture problem is brewing, said the 10 people, who asked not to be identified for fear of retribution…
