Nvidia Corporation, is an American based multinational organization with subsidiaries in multiple countries worldwide. The global organization specializes in manufacturing graphic processor technologies for small mobile devices such as smartphones and computers. The multinational is based in Santa Clara, Califonia and its supplies include graphic processing units, motherboard chipsets, game consoles and smartphone graphic controller. Its product line include NForce (chipsets), Quadro and GeForce.
Recently from 2018, 2019 and 2020, Nvidia Corporation made a notable accomplishment exhibited by a meteoric rise in its stock price. Nvidia shares by 2018 had increased 14-fold, a milestone that was attributed to the company’s CEO Jen-Hsun "Jensen" Huang. Nvidia’s stock price burgeoned with an almost 190% from just $98 in March 2017 to $284 recorded in March 2020 ( Team , 2020) . Nvidia has recorded an approximately 400% increase in its stock price, a growth that has been termed as a remarkable accomplishment for the company. The company’s exponential surge in its stock price made Nvidia’s leader Jensen Huang be named the number one top performing chief executive officer globally in 2019.
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Jensen Huang has been regarded as a figurehead endowed with an admirable leadership talent. An article by Alsadey, Omran and Pakir (2010) posit that talent is a pivotal ingredient in performing any role at excellence. Albeit scarce, quality talent in the right place at the right time is a key driver for global organization’s success. Tolerance to take risks and intellectual honesty are critical leadership attributes exhibited by Jensen Huang which have played an instrumental role in the company’s recent stock price surge. Upon being interviewed, Jensen Huang asserted that the attributes have conditioned him to celebrate failure and learn from past mistakes. A leadership study by Armstrong, Francis and Grow (2017), indicated that global leaders ought to master the attribute of risk tolerance by stepping out of their comfort zones, learn from mistakes, focus on outcome rather than rewards and acknowledge that success and failure are interconnected and necessary for growth. Venturing into murky and unchartered waters as underscored by Jensen Huang has catapulted the multinational to its current stardom state. Intellectual honesty leadership attribute has cultivated a culture in Nvidia that tolerates failure, a trait that has enabled Jensen Huang venture into new ideas such as product innovation.
Authentic leadership is a crucial attribute that has enabled Jensen Huang inspire loyalty and trust in his employees by displaying who he really is and his feelings about the staff performance. According to Alsadey et al., (2010) authentic leadership is vital in building a leaders’ legitimacy and cultivating honest relationships with employees. By generating enthusiastic support and building trust with subordinate employees in Nvidia, Jensen Huang has significantly improved individual and team perfomance eventually leading to the meteoric rise in company’s stock price. Authentic leadership enables Jensen Huang be mission driven and focussed on results by putting the organization’s goals ahead of his own self interests. The attribute propels Jensen Huang to pursue results not for his ego, money or power but in the interest of Nvidia. The authenticity attribute drives Jensen Huang to focus on the long term shareholder’s value rather than just quarterly estimates. Over time the multinational’s stock price has grown exponentially as Jensen Huang realized that nurturing hard work and patient are necessary in building an organization’s reputation in the long term.
Jensen Huang is a visionary and a thoughtful leader, attributes that have been essential in realization of stock price rise accomplishment. Being visionary drives Jensen Huang to recognize needs in the market and take advantage of power vacuum which has made Nvidia stomp out rival firms such as Intel Corporation. His visionary leadership attribute positioned Jensen Huang to predict in advance what would become the new norm in the modern day world. Jensen Huang understood that artificial intelligence and machine learning would be vital in solving complex problems. A leadership article by Alsadey et al., (2010) elucidates that visionary leaders are inspired and driven by what an organization can become and identifies themselves as confident coaches who are meant to drive the company through turbulent transitions. Jensen Huang had an ingrained vision of how the world would look in 30 years and set out concrete steps to bring the vision into life by leading a star studded team of employees to that direction. Jensen Huang displays collaborative leadership attribute as manifested by his proactive involvement of teams in Nvidia. He understands that team member buy-in is realized when all employees are invited to participate in the creative process. Jensen Huang leverages on the strengths of team members in Nvidia to balance his weaknesses and embrace ingenuity. Jensen Huang is a thoughtful leader, an attribute that has been key in driving up company’ stock price. Nvidia employees regard Jensen Huang as thoughtful and strong, traits that pushes him to better understand his feelings through introspection. Being thoughtful instils an insatiable need for knowledge which drives the Nvidia CEO to dissect the mundane and alternative concepts. Thoughtful leaders explore, probe and prod to get to the core of truth by acknowledging that all possibilities are worthy open consideration ( Công la , 2012) . The leadership attributes have been mirrored by the rapid growth of Nvidia profits margins and the skyrocketing of the organization’s stock price from $30 to $280.
References
Armstrong, A., Francis, R., & Grow, H. (2017). Ethical issues in the employment of expatriate leaders in corporations. Journal of Economic and Social Development, 4(1), 71-80.
Alsadey, S., Omran, A., & Pakir, A. H. K. (2010). Perspective on the personal and professional needs of the project leader in construction industry in Libya: a case study. Manager Journal, 11(1), 188-195.
Công la (2012). Harvard-12-Leaders Create their Environment I &2-Psychology of Leadership-Tal Ben Shahar [eTati].mp4, https://www.youtube.com/watch?v=oMpL8YPO7hc
Team , T., (2020). Nvidia’ Stock Price Has Nearly Tripled In The Last 3 Years- Here’s Why!, Forbes, https://www.forbes.com/sites/greatspeculations/2020/03/06/nvidia-stock-price-has-nearly-tripled-in-the-last-3-yearsheres-why/#13fc91fd2cf3
