Summary of Key Points
Jensen Huang has leveraged NVIDIA's absolute dominance in the field of AI computing power to significantly boost the market value or valuation of companies across various segments of the AI ecosystem, ranging from chip IP to cloud computing, enterprise software, and robotics—these companies are listed on the NASDAQ, A-share markets, and in the primary market. This approach has created a cross-sectoral, cross-market “AI market value enhancement technique.” Behind this strategy lies a combination of computational power monopoly, deep capital integration, and the leverage of low marginal costs. However, it also carries risks such as valuation bubbles, ecological dependence, regulatory scrutiny, and competitive challenges.
Detailed Analysis
#### 1. How Powerful is Huang Renxun’s “Magic Touch”? – Turning Hundreds of Billions in Market Value with a Single Statement
The immediate impact of Huang Renxun’s words is evident in several cases:
- Marvell: During a speech in Taipei, he referred to the company as the “next trillion-dollar enterprise,” and Marvell’s stock price soared 32% on that day, increasing its market value by $40 billion.
- Arm: Its valuation jumped twice due to his remarks, rising by a total of 274% within the year, reaching over $300 billion.
- Zhongji Xuchuang: Identified as a key supplier for NVLink, the company’s stock price rose three consecutive days, adding an additional $28 billion to its market value.
- Nokia: NVIDIA invested $1 billion in AI and 6G technologies, causing Nokia’s stock price to rise by 21% in a single day (the largest increase in nearly a decade).
- Lenovo: He declared “this year is your year,” and Lenovo’s Hong Kong stock price soared from HK$9 to HK$27 within half a year, an increase of 200%.
- The primary market saw even more dramatic results: Yushu Technology’s IPO was accelerated due to its partnership with NVIDIA, boosting Wayve’s valuation from $1.2 billion to $4.5 billion.
In short, his words or actions have the power to propel a company’s market value through the sky, making him almost like a modern-day “God of Wealth.”
#### 2. Why Only Huang Renxun Can Be the “AI God of Wealth”? – Three Core Pillars
Not everyone can boost a company’s market value just by speaking. Huang Renxun’s authority stems from three key factors:
- Computational Power Monopoly: NVIDIA controls more than 90% of the global AI training chip market, acting as the industry’s essential infrastructure provider. Without its GPUs, AI companies cannot operate effectively. Investors trust him because his insights represent the prevailing trends in the industry.
- Capital Integration: NVIDIA has invested in 145 companies over the past two years (for a total of $20 billion), mostly supporting its own partners. For example, NVIDIA invested $2 billion in Marvell just three months before its stock price surge.
- Low-Cost Leverage: Traditional companies face high costs for boosting their valuations through share repurchases or positive announcements. In contrast, Huang Renxun’s speeches require almost no investment and can generate several times the increase in market value—this leverage is more effective than any financial tool.
#### 3. The Closed Loop of This “Magic Touch”
Huang Renxun’s approach creates a self-sustaining cycle:
- NVIDIA invests → Huang Renxun provides support → Company market value increases → Company expands production → Purchases more NVIDIA chips → NVIDIA’s performance improves → Stock price rises → Further investments in more companies → More support is provided
For instance, with OpenAI: NVIDIA invests, OpenAI purchases GPUs, Huang Renxun boosts OpenAI’s valuation, which leads to additional funding, more GPU purchases, and even greater performance for NVIDIA. This cycle benefits both NVIDIA and the invested companies, but it also binds the entire ecosystem to NVIDIA’s success.
#### 4. Concerns Behind the Prosperity: Bubbles, Dependence, Regulatory Threats, and Competitors
This “magic touch” is not without flaws, and risks are accumulating:
- Valuation Bubbles: Companies like Marvell have a market value of $250 billion, still four times short of the trillion-dollar mark, and their short-term AI spending growth may not be sustainable. OpenAI’s high valuation may not be supported by substantial commercial revenue; a cooling in the AI industry could lead to sudden collapses.
- Ecological Dependence: All companies rely on NVIDIA, focusing their resources on maintaining these partnerships rather than pursuing independent innovation. This centralization of the supply chain makes the entire industry vulnerable to NVIDIA’s issues.
- Regulatory Attention: The U.S. SEC and European anti-monopoly authorities are monitoring this phenomenon, as such significant market movements could be seen as manipulation or abuse of a monopoly. A penalty could undermine the foundation of this strategy.
- Competitors on the Rise: AMD’s MI300 chips are competing with NVIDIA’s products, and both Intel and Chinese companies are also entering the market. As the supply of computing power increases, NVIDIA’s monopoly may weaken, potentially rendering this “magic touch” ineffective.
In Conclusion
Huang Renxun’s “magic touch” is a benefit of the AI era, but it is not an eternal privilege. The AI industry must ultimately rely on technology and actual performance; bubbles created by mere endorsements will eventually burst.