Overworked but wealthy employees are powering Nvidia's AI boom

Nvidia's employees drive AI success through hard work and wealth, despite demanding work conditions.

: Nvidia's stock surged 3,776% since 2019, partly due to overworked yet wealthy employees. The company, led by CEO Jensen Huang, imposes a high-pressure work environment with long hours but lucrative compensation. Employee turnover is remarkably low at 2.7% after hitting a $1 trillion valuation, thanks to incentivizing stock grants. Nvidia's latest revenue hit $30.04 billion in Q2 FY2025, driven by AI GPU demand.

Nvidia has seen a 3,776% increase in its stock price since 2019, a reflection of its pivotal role in the AI revolution. This growth has not only transformed the company's financial landscape but also created significant wealth among its employees, as seen in their luxury cars and homes. Despite this wealth, employees face a high-pressure work environment driven by founder and CEO Jensen Huang, who fosters a culture of hard work and scrappiness.

The work environment at Nvidia often involves grueling schedules, with employees working up to seven days a week. This intensity is coupled with frequent confrontations in meetings, driven by Huang's philosophy of pushing employees to their limits. Nevertheless, the lucrative compensation packages, largely in the form of stock grants that vest over four years, make it difficult for employees to leave and contribute to the company's very low turnover rates of 2.7% post-$1 trillion valuation.

Financially, Nvidia continues to outperform expectations, reporting an all-time high quarterly revenue of $30.04 billion in Q2 FY2025, which is a 122% increase year-over-year. The company's net income for the quarter was $18.642 billion, showcasing a 174% increase from the previous year. However, Nvidia's cautious guidance for the next quarter has raised concerns among Wall Street analysts, potentially due to supply constraints and high demand for their AI GPUs.

NvidiaAItech industry