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."
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.
Ummm, nope. Some might, but not everyone by a longshot. Salaries aren’t great either.
Hmm, interesting, are you able to expand on that at all? The people I know who are retiring have been there a decade or so, I’m wondering what newer hires are experiencing.
You guys get raises?
Yes and if your employer doesn’t give you one you should leave.
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.
https://feddit.uk/post/12865710
[The execs and above are] Well compensated for pouring jet fuel on climate disaster.
Delete Nvidia
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.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.
The problem is believing in some kind of objective, “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
