As Chip Maker Stocks Rise, Employees Get Richer

Opportunities Brought by the Era of Artificial Intelligence

In recent years, the rapid developments in the field of artificial intelligence have propelled the market values of leading chip manufacturers such as Nvidia, Broadcom, and AMD to record levels. This situation has led not only to the enrichment of investors but also of the employees working in these companies. Stock-based payments help these firms establish a strong connection with their employees.

Long-Term Loyalty with Stock Options

Especially performance systems supported by stock-like payments create a strategic way to enhance employee long-term loyalty. The limited stock units (RSUs) granted to employees have, in some cases, gained over 300% in value. However, for those who decide to leave the company before the vesting period is completed, the situation can be quite challenging. Employees are forced to forfeit shares they have not yet vested.

The RSU Application and the 'Golden Handcuffs' Method

RSUs have been a previously used method, especially in tech giants like Nvidia, Google, and Amazon. However, in chip manufacturers, this system is now referred to as "golden handcuffs." According to an Nvidia employee, “If I leave now, it’s impossible to find my current salary elsewhere; I have to wait until my shares vest.” This increases employee loyalty to the company, creating a stable workforce.

Growing Share Values and Their Impact on Employees

As of 2023, the RSU package worth $488,000 granted to Nvidia employees has now exceeded $2.2 million. At Broadcom, a $66,000 equity package has risen to $265,000. Some employees have seen their RSU packages appreciate by 300-350%. Chip manufacturers believe this system enhances employee loyalty; for instance, according to Nvidia's report, the turnover rate was 5.3% in 2023, and it has decreased to 2.5% in 2025.

New Vesting Models and Performance Incentives

One of the notable innovations in the RSU field recently has been the “front-loaded” vesting model. With this model, employees are granted a larger share in the first year to attract talent and reward performance. As the era of artificial intelligence progresses, chip manufacturers are drawing attention not only with their technologies but also with their human resources strategies. RSUs provide significant financial gains for employees while also tightly binding them to their companies.