Nvidia employee worth: You won’t believe how much each Nvidia employee is worth as the company rides the AI gold rush

While Nvidia is one of the most valuable companies in the world, worth around $3.5 trillion, what’s more interesting is that the top chipmaker has employed just 36,000 workers. That means each employee accounts for more than $90 million in market value, as per Investopedia.

Nvidia’s $3.5 Trillion Value Comes With a Tiny Workforce

To put that in perspective, that’s almost three times the per-employee value of Broadcom, and compared to Apple or Microsoft, it’s in another league, as Apple stands at about $18 million per worker and Microsoft even lower at $15 million, according to the report.

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Are Big Companies Hiring Fewer People These Days?

This data was recently analysed by Deutsche Bank research strategist Jim Reid, who was curious to find out, “Are today’s largest companies structurally employing fewer people than in the past?” as per Investopedia.

To find out the answer, Reid analysed some of the United States’ most valuable companies since 1950 and their respective headcounts when their value was at its peak, reported Investopedia. While many assume that there has been a structural shift toward smaller employee rolls as technological advancements improved efficiency, but as per Reid’s historical study, “employment density” at America’s biggest companies goes through cycles, reported Investopedia.

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The strategist pointed out that Cisco in the late 90’s is the historical example that most resembles Nvidia as the AI chipmaker is “operationally lean, highly reliant on intellectual property and engineering talent, and outsources the more labour-intensive aspects of production,” quoted Investopedia.He also found that General Motors (GM), which was America’s biggest firm in the 1950s, employed around 600,000 people at its peak, then in the late ’60s, Eastman Kodak surpassed GM in market value with only one-sixth of the workforce, reported Investopedia. Reid even revealed that in the ’70s, General Electric employed around 400,000 workers, as per the report. According to Investopedia, Amoco’s market cap rose in the late 70s with just about 50,000 workers.

Technology Is Changing Work, Not Erasing It

Reid said, “What’s clear through history is that while we’ve always found ways to employ people, how they’re distributed across firms and sectors is constantly evolving,” quoted Investopedia.

FAQs

Is Nvidia’s small workforce unusual for such a large company?
Yes, but it’s not entirely new. Other companies in history have also reached high valuations with relatively small teams.

Is AI making jobs disappear?
Not necessarily. History shows that jobs shift, not vanish, companies just organize work differently over time.

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